fy 2016-17 education omnibus budget …...house fiscal agency 2 6/8/2016 fy 2016-17: school aid...

House Fiscal Agency 1 6/8/2016

FY 2016-17 EDUCATION OMNIBUS BUDGET

Summary: Conference Report Senate Bill 801 (S-1) CR-1

Mary Ann Cleary, Director

TOTAL APPROPRIATIONS BY BUDGET AREA

Budget Area (Bill Page) [Summary Page]

FY 2016-17

Gross SAF GF/GP

School Aid (3) [2] $14,161,842,100 $12,052,309,300 $218,900,000

Community College (307) [16] 395,925,600 260,414,800 135,510,800

Higher Education (335) [22] 1,582,640,400 237,109,500 1,243,904,500

TOTAL $16,140,408,100 $12,549,833,600 $1,598,315,300

Note: Appropriation figures include all proposed appropriation amounts, including amounts designated as one-time.


FY 2016-17: SCHOOL AID Summary: Conference Report Article I, Senate Bill 801 (S-1) CR-1

Analysts: Bethany Wicksall Samuel Christensen

FY 2015-16 YTD FY 2016-17 FY 2016-17 FY 2016-17 FY 2016-17 Difference: ConferenceFrom FY 2015-16 YTD

as of 2/10/16 Executive House Senate Conference Amount %IDG/IDT $0 $0 $0 $0 $0 $0 --Federal 1,775,769,200 1,818,632,700 1,818,632,700 1,818,632,700 1,818,632,700 42,863,500 2.4Local 0 0 0 0 0 0 --Private 0 0 0 0 0 0 --Restricted 12,078,985,100 12,134,479,400 12,148,050,100 12,062,479,600 12,124,309,400 45,324,300 0.4GF/GP 45,900,000 230,000,000 221,000,100 226,000,000 218,900,000 173,000,000 376.9

Gross $13,900,654,300 $14,183,112,100 $14,187,682,900 $14,107,112,300 $14,161,842,100 $261,187,800 1.9 Notes: (1) FY 2015-16 year-to-date figures include mid-year budget adjustments through February 10, 2016. (2) Appropriation figures for all years include all proposed appropriation amounts, including amounts designated as "one-time." Overview The School Aid budget makes appropriations to the state's 541 local school districts, 300 public school academies, the Education Achievement System, and 56 intermediate school districts (ISDs) for operations and certain categorical programs. It also appropriates funds to the Center for Educational Performance and Information, the Workforce Development Agency, and other entities to implement certain grants and other programs related to K-12 education.

Major Budget Changes From FY 2015-16 YTD Appropriations

FY 2015-16 Year-to-Date

(as of 2/10/16)

FY 2016-17Conference

Change

1. Foundation Allowances (Secs. 22a and 22b) Executive increases foundations using the 2x funding formula with increases ranging from $60 to $120 per pupil. Increases the State Maximum Guaranteed Foundation (the Basic) from $8,169 to $8,229 and the Minimum Foundation from $7,391 to $7,511. The increase costs $150.0 million, but after a cost reduction of $126.7 million due to increasing local share from increasing taxable values and declining pupils, the net increase totals $ 23.3 million. Adds $72.0 million in Detroit Public Schools (DPS) Trust Funds to support the foundation allowance costs of the newly proposed Detroit Community district to offset the loss of local school operating millage revenue, which would be redirected to pay off the debts of the former district. Adds $1.0 million to change the pupil membership blend from 90% of the October count plus 10% of the previous February count to 50% of the fall count plus 50% of the previous February count. House concurs with Executive on foundation increases and $72.0 million from the Community District Trust Funds for DPS. Revises the pupil membership blend to 85% of the current October count plus 15% of the previous October count. Includes $13.5 million for proposed pupil membership blend changes. Senate concurs with Executive on foundation increases. Does not include $72.0 million from the Community District Trust Funds for DPS. Revises pupil membership blend to 75% of the current October count plus 25% of the previous February count and includes $2.3 million for a proposed pupil membership blend change. Redirects $9.0 million Sec. 20j adjustments to Sec. 20f. Conference concurs with Executive, House, and Senate on foundation increases; concurs with Executive and House on funding for the Community District; does not include a change to the pupil membership blend; includes $9.0 million for Sec. 20m (formerly 20j) calculations.

GrossRestricted

GF/GP

$9,009,700,000 8,993,379,500

$16,320,500

$95,300,000 (60,782,300)

$156,082,300




(as of 2/10/16)


Change

2. MPSERS Unfunded Liability – State Share (Sec. 147c) Executive increases funding for the state share of Michigan Public School Employees' Retirement System (MPSERS) unfunded liability costs for districts, ISDs, and public libraries pursuant to PA 300 of 2012 by $89.3 million, bringing the total to $982.8 million. House, Senate, and Conference concur with Executive.

GrossRestricted

GF/GP

$893,500,000 892,900,000

$600,000

$89,300,00089,300,000

$0

3. Flint Declaration of Emergency (Sec. 11s) – NEWExecutive provides $10.1 million for half-year funding to provide universal Early On testing to identify and provide services to children 0-3 ($6.4 million), universal access to preschool for 4-year-olds ($1.5 million), additional district school nurses and school social workers ($1.3 million), and ISD staff and services including ($1.0 million). Additional funding, if necessary, would be available for transfer from a $50.0 million Flint Emergency Reserve Fund proposed in the FY 2015-16 supplemental for DTMB. Additionally, it would appropriate up to $15.0 million in state restricted contingency funds, which would not be available for expenditure until approval of a transfer by the Legislature. (See FY 2015-16 supplemental items below.) House, Senate, and Conference concur with Executive but revises allocations to $6.2 million for early intervention services and $1.2 million for ISD staff and services.

GrossRestricted

GF/GP

$0 0

$0

$10,142,600100

$10,142,500

4. Statewide School Water Testing (Sec. 78) – NEWExecutive adds $9.0 million to provide 2nd of 3 years of funding to test school building water systems for lead. House and Senate did not include this section. Conference concurs with House and Senate ($4.5 million in MDE budget.)

GrossRestricted

$0 0

$00

5. State School Reform/Redesign (Sec. 21) – NEWExecutive adds $5.0 million for CEOs and supplemental payments to districts with schools identified as being in the lowest achieving 5% of public schools in the state and under the control of the State School Reform/Redesign Office (SRRO). Districts would receive a 20% foundation allowance premium for each high school FTE to compensate for the loss in foundation allowance funds remaining with elementary FTEs, since elementary foundation allowance funds often subsidize higher cost secondary schools, but would no longer be available to do so under a takeover. (See FY 2015-16 supplemental items below.) House includes with a $100 placeholder. Senate concurs with the Executive but restricts funds from being used for a district operating under a local government option of the Local Financial Stability and Choice Act. Conference concurs with Senate.

GrossRestricted

$0 0

$5,000,0005,000,000

6. Competency-Based Funding Pilot (Sec. 21g) – NEWHouse provides $1.0 million GF/GP to pilot a competency-based transcript and market place to establish an articulation framework for Michigan academic, technical, and global competencies and to establish assessment criteria for measuring these competencies and awarding universally recognized credentials. Senate does not include. Conference includes $500,000.

GrossGF/GP

$0 0

$500,000500,000




(as of 2/10/16)


Change

7. Consolidation Innovation Grants (Sec. 22g) Executive and House maintain current law. Senate adds $1.5 million SAF for FY 2016-17. Allocates $1.0 million for grants to districts or ISDs for feasibility studies to explore dissolution, consolidation, or annexation. Allocates $2.5 million for grants to districts that received a grant in FY 2015-16 for reimbursement of remaining transition costs. Allocates $3.0 million for grants to districts or ISDs which 1) had a feasibility study that determined dissolution, consolidation, or annexation was in the districts' best interest; 2) had the potential for fiscal stress declared by the State Treasurer; or 3) is required to submit an enhanced deficit elimination plan because the State Treasure determined that the district is subject to rapidly deteriorating financial circumstances. Conference reduces to $3.0 million and earmarks $2.5 million for grant to district that approved annexation and received a grant in FY 2015-16.

GrossRestricted

$5,000,000 5,000,000

($2,000,000)(2,000,000)

8. Youth Challenge Program (Sec. 24c) Executive and House increase the appropriation by $25,000 SAF, reflecting economics increases, for a total of $1.5 million. Senate concurs on economics increases and adds an additional $210,000. Conference concurs on economics and adds an additional $110,000 for a total of $1.6 million SAF.

GrossRestricted

$1,497,400 1,497,400

$135,000135,000

9. Strict Discipline Academies (Sec. 25f) Executive and House decrease the appropriation for the added costs of educating strict discipline academy pupils to $250,000 SAF. Senate maintained current-year appropriation levels. Conference reduces to $750,000 SAF.

GrossRestricted

$1,000,000 1,000,000

($250,000)(250,000)

10. Dropout Recovery Programs (Sec. 25g) Executive and House decrease the appropriation for the additional costs of educating pupils in a year-round dropout recovery program to $250,000 SAF. Senate maintained current-year appropriation levels. Conference reduces to $750,000 SAF.

GrossRestricted

$1,000,000 1,000,000

($250,000)(250,000)

11. "At Risk" Pupil Support (Sec. 31a) Executive maintains current year appropriation levels. House increases by $18.0 million to allow both Hold Harmless and Out-of-Formula districts to be eligible for partial funding. Senate concurs with Executive. Conference concurs with Executive and Senate.

GrossRestricted

$378,988,200 378,988,200

$00

12. Year-Round School Grants (Sec. 31b) – NEWHouse adds $3.5 million for grants to districts for building modifications or other nonrecurring costs related to implementing a new year-round school. Senate does not include. Conference includes $1.5 million SAF.

GrossRestricted

$0 0

$1,500,0001,500,000

13. Gang Prevention Grants (Sec. 31c) Executive eliminates funding of $1.0 million and repeals Sec. 31c. House increases funding by $3.0 million for a total of $4.0 million. Senate concurs with Executive. Conference includes $3.0 million SAF.

GrossRestricted

$1,000,000 1,000,000

$2,000,0002,000,000

14. Local Produce in School Meals (Sec. 31j) – NEWSenate adds $500,000 GF/GP for a pilot project to support districts in the purchase of locally grown fruits and vegetables for use in school lunches. This appropriation would be distributed to districts in Prosperity regions 2, 4, and 6 at a reimbursement rate of 10 cents per meal, with priority to districts with a high percentage of kids eligible for free lunch. Conference includes $250,000 GF/GP and limits to regions 2 and 4.

GrossGF/GP

$0 $0

$250,000$250,000




(as of 2/10/16)


Change

15. Early Learning Cooperative (Sec. 32q) – NEWSenate adds $175,000 GF/GP for FY 2016-17 for a district partnering with an early childhood collaborative on a pilot program to evaluate the benefits of 2 years of preschool for vulnerable children, with the intent that the funding would be the 1st of 3 years of funding. Conference includes $175,000 SAF to an ISD in county with population between 500,000 and 800,000, in which there is an early learning collaborative.

GrossRestricted

$0 0

$175,000175,000

16. Early Literacy (3rd Grade Reading) Initiative (Sec. 35 and 35a) Executive reduces funding by $2.5 million by eliminating Parent University ($1.0 million), Michigan Education Corps ($1.0 million), and one-time funding for an early literacy certification test ($500,000). Maintains funding for administration ($1.0 million), professional development ($950,000), diagnostic tools ($1.5 million), literacy teacher coaches ($3.0 million), and added instructional time ($17.0 million). House concurs with Executive. Senate concurs but maintains the Michigan Education Corps ($1.0 million). Conference concurs with Senate. (See FY 2015-16 supplemental items below.)

GrossRestricted

GF/GP

$26,400,000 23,900,000 $2,500,000

($1,500,000)(1,000,000)($500,000)

17. Special Education Reforms (Sec. 54b) – NEWExecutive adds $1.4 million for the implementation of recommendations of the Special Education Reform Task Force published in January 2016. $750,000 would be used to pilot statewide implementation of the Michigan Integrated Behavior and Learning Support Initiative (MiBLSI), a program of positive behavioral intervention and supports, in at least 3 ISDs. $620,000 would be used for training related to the safe implementation of emergency restraints and seclusion. House and Senate concur with Executive. Conference includes a total of $1.1 million including $625,000 for MiBLSI and $500,000 for emergency restraints and seclusion training.

GrossRestricted

$0 0

$1,125,0001,125,000

18. Career and Technology Education Programs (Sec. 61a) Executive maintains current year appropriation levels. House includes $115,000 GF/GP to a non-profit organization that provides curriculum and training to CTE programs in restaurant management and culinary training. Senate concurs with House but moves $100,000 GF/GP for restaurant and culinary CTE to new Sec. 61e. Conference concurs with House but includes $79,000 GF/GP for restaurant and culinary CTE program.

GrossRestricted

GF/GP

$36,611,300 36,611,300

$0

$79,0000

$79,000

19. CTE Early/Middle Colleges (Sec. 61b) Executive increases funding to $15.0 million for career & technical education (CTE) early/middle colleges that allow a student to graduate in 5 years with both a high school diploma and postsecondary credentials. Revises to make districts that receive funding for CTE program added costs under Section 61a eligible for funding under this section, as long as combined payments under Sections 61a and 61b do not exceed the total allowable costs of the program. House concurs with Executive recommendation increase but allows up to $500,000 for grants for planning new or expanded programs and caps planning grants to $50,000 per program. Senate maintains current year appropriation levels, but allows unused funds to be used for planning, development, or expansion grants. Conference reduces to $9.0 million and expands to allow funds to be used for CTE dual enrollment and to include $500,000 in planning grants for new or expanded programs. (See FY 2015-16 supplemental items below.)

GrossRestricted

$10,000,000 10,000,000

($1,000,000)(1,000,000)




(as of 2/10/16)


Change

20. CTE Equipment Upgrades (Sec. 61c) – NEWExecutive provides $10.0 million in a competitive grant program to districts and ISDs to improve capital infrastructure for their CTE programs including the purchase of equipment, renovations related to installation of equipment, installation costs, and training for instructors providing instruction using the equipment. Caps individual grant awards at $500,000. House concurs with Executive. Senate concurs with Executive appropriation amount but revises to provide funds to cooperating education policy districts (CEPDs) for programs driving economic development and building a more qualified workforce. Conference includes $3.0 million and concurs with Senate distribution of funds. Also includes $200,000 for a CTE program in mechatronics.

GrossRestricted

$0 0

$3,200,0003,200,000

21. Educational Pipeline Grant (Sec. 61d) – NEW Senate adds $500,000 GF/GP for a competitive grant program to create a seamless educational and career pipeline from kindergarten through college. Conference does not include.

GrossGF/GP

$0 $0

$0$0

22. CTE (ISD/Health Department) Partnership (Sec. 63) – NEW Senate adds $500,000 SAF to an ISD for a joint capital project with a local health department for a new building connected to the ISD CTE center. Conference includes $250,000 SAF.

GrossRestricted

$0 0

$250,000250,000

23. Intermediate School District (ISD) General Operations (Sec. 81) Executive increases ISD funding by 1.6%, or $1.1 million, to a total of $68.2 million. House and Senate concur with Executive. Conference maintains FY 2015-16 funding levels.

GrossRestricted

$67,108,000 67,108,000

$00

24. Educator Evaluations (Sec. 95a) Executive adds $10.0 million into the Educator Evaluation reserve fund to provide training in educator evaluation systems. House instead adds $100 placeholder in Sec. 95b for a statewide student growth tool for the purposes of educator evaluations. Senate includes a $100 placeholder. Conference does not include this section.

GrossRestricted

$0 0

$00

25. Michigan Virtual University (MVU) (Sec. 98) Executive and House maintain FY 2015-16 funding levels. Senate reduces appropriation to $7.0 million GF/GP for FY 2016-17. Adds requirement that MVU report by Nov. 1, 2016 on its mission, its plans, and proposed benchmarks it must meet, including a plan to increase by 50% improvement for each requirement under this section in order to receive full funding for FY 2017-18, with a progress report by March 1, 2017. Also, expands profession development requirements from 500 educators to 30,000 and requires coordination with Math/Science Centers. Conference maintains FY 2015-16 funding levels and concurs with Senate boilerplate.

GrossGF/GP

$7,387,500 $7,387,500

$0$0

26. FIRST Robotics (Sec. 99h) Executive increases funding for district grants for FIRST Robotics programs to a total of $2.5 million. House maintains current year appropriation. Senate concurs with Executive. Conference concurs with Executive and Senate and expands to include programs in grades K-12 including Jr. Lego and Lego.

GrossRestricted

$2,000,000 2,000,000

$500,000500,000




(as of 2/10/16)


Change

27. MiSTEM Grants (Sec. 99s) Executive adds $1.3 million bringing total funding to $10.5 million. Maintains existing funding for Math/Science Centers ($8.0 million). Rolls up funding currently going to Science Olympiad, STEM professional development, MI STEM Partnership, and VanAndel Institute along with the increased $1.3 million to implement grants based on the MiSTEM Council recommendations. House maintains current year appropriation total, and maintains current year individual grant levels, but revises Math/Science Center funding as follows: creates 10 MiSTEM Centers in each prosperity region (with an ISD fiscal agent for each); MiSTEM Centers would coordinate with the MiSTEM council and Change the Equation STEMworks and distribute at least half of the funding to districts for participation in eligible STEM programs. Senate adds $2.3 million bringing total funding to $11.5 million. Increases funding for MiSTEM council grants by $1.5 million, increases state funding to Math and Science centers by $1.0 million, and increases funding to Science Olympiad and Van Andel Education Institute by $250,000 each. Eliminates Michigan STEM Partnership and STEM Professional Development. Conference adds total of $275,000 bringing total to $9.4 million. Maintains current year funding for Math/Science Centers, Science Olympiad and Van Andel Institute; eliminates Michigan STEM Partnership and STEM Professional Development; adds $1.0 million for MiSTEM council grants and requires MiSTEM council to be trained in and use Change the Equation STEMworks rating system to rate programs funded by the council.

GrossFederal

RestrictedGF/GP

$9,274,300 5,249,300 3,250,000 $775,000

$275,0000

(250,000)$525,000

28. Online Algebra tool (Sec. 99t) – NEW House provides $2.0 million GF/GP for a statewide online algebra tool that provides students with algebra related videos, adaptive diagnostics, online supports, practice assessments, and professional development for teachers. Senate provides $100 GF/GP for a statewide online algebra tool. Conference includes $1.5 million GF/GP.

GrossGF/GP

$0 $0

$1,500,000$1,500,000

29. Financial Data Analysis Tools (Sec. 102d) Executive maintains current year appropriation levels. House adds $100,000 SAF to add reimbursements to ISDs. Senate maintains current year appropriation levels but adds ISDs as eligible recipients. Provides a reimbursement formula that first funds up to 50% of the cost for each district and ISD that applies and second distributes remaining funds on an equal per-pupil basis. Caps reimbursement at total cost and restricts to not more than 1 software application per district or ISD. Conference concurs with Senate.

GrossRestricted

$1,500,000 1,500,000

$00

30. M-STEP Assessments (Sec. 104) Executive reduces by $10.1 million bringing total funding for student assessments to $40.1 million. Eliminates $8.5 million in one-time funding to convert assessments to online tests, expand writing assessments to additional grades, and create additional constructed response test questions, all of which has been completed. Also eliminates funding that had supported the Kindergarten Entry Assessment (KEA), which has been replaced by a kindergarten summative assessment. House reduces funding by $22.0 million and eliminates the M-STEP. The remaining $22.0 million SAF and $6.3 million Federal funding would instead be used for a statewide contract for a computer adaptive test, which would replace M-STEP. Senate provides $41.1 million gross for student assessments. Includes $1.1 million for a pilot literacy preparation initiative for grades K-8. Also includes $250,000 to districts that use the KEAA developed for FY 2015-16. Conference concurs with Executive but requires MDE make the KEA available to districts, and allocates $185,000 to implement a kindergarten readiness assessment (KRA) in participation with a Maryland-Ohio pilot.

GrossRestricted

Federal

$50,244,400 43,994,400

6,250,000

($10,100,000)(10,100,000)

0




(as of 2/10/16)


Change

31. Nonpublic School Reimbursements (Sec. 152b) – NEWHouse adds $1.0 million SAF to reimburse nonpublic schools for the costs related to activities identified in the nonpublic schools mandate report required under Sec. 236 of PA 252 of 2014. Senate concurs but appropriates $5.0 million GF/GP. Conference includes $2.5 million GF/GP.

GrossGF/GP

$0 $0

$2,500,000$2,500,000

32. Technology Readiness Infrastructure Grants (Sec. 22i) Executive eliminates funding and repeals this section. House, Senate, and Conference concur with Executive.

GrossRestricted

$23,500,000 23,500,000

($23,500,000)(23,500,000)

33. Other Program Eliminations Executive eliminates funding and repeals the following sections:

Sec. 31h – Cooperative Education (Albion/Marshall) - $300,000 Sec. 43 – Teacher Certification Test Rewrite - $1.8 million Sec. 99c – Civics Education - $60,000 Sec. 104d – Computer Adaptive Tests - $4.0 million

House concurs with repealing of sections 31h, 43, 99c, and 104d. Senate concurs with repealing Sec. 43 but maintains funding for Sec. 31h and Sec. 99c, and increases Sec. 104d by $5.5 million. Conference repeals Secs. 43 and 99c but maintains funding for Secs. 31h and 104d.

GrossRestricted

GF/GP

$6,160,000 4,360,000

$1,800,000

($1,860,000)(60,000)

($1,800,000)

34. Michigan College Access Network (MCAN) (Sec. 67) Executive reduces funding by $550,000 to eliminate one-time funding for an online career planning tool, leaving $3.1 million for the balance of MCAN efforts to expand access to college. House, Senate, and Conference concur with Executive.

GrossRestricted

$3,600,000 3,600,000

($550,000)(550,000)

35. Special Education (Sec. 51a, 51c, 51d, 53a, 54, and 56) Executive increases funding for special education by $54.5 million to a total of $1.4 billion to reflect updated estimates. (See FY 2015-16 supplemental items below.) House, Senate, and Conference concur with Executive.

GrossRestricted

Federal

$1,359,546,100 918,546,100 441,000,000

$54,500,00054,500,000

0

36. Other Cost Adjustments Executive adjusts appropriation levels based on actual prior year costs for the following:

Sec. 11m - Cash Flow Borrowing Costs - $1.0 million increase to $3.0 million.

Sec. 26a - Renaissance Zones - $6.3 million decrease to $20.0 million. Sec. 31f - School Breakfast Program - $3.1 million decrease to $2.5

million. Sec. 24a - Juvenile Detention Facilities - $861,700 decrease to $1.3

million. House, Senate, and Conference concur with Executive.

GrossRestricted

NA NA

($8,286,700)(8,286,700)

37. Federal NCLB/ESSA Funding (Sec. 39a(1)) Executive recognizes increase in funding under the new Every Student Succeeds Act (ESSA) of $55.9 million for student support and academic enrichment. Reduces Drug-Free School and Community funds by $3.0 million to a total of $2.0 million, and eliminates all but $250,000, a reduction of $10.0 million, in charter school subgrant funds. House, Senate, and Conference concur with Executive.

GrossFederal

$779,076,400 779,076,400

$42,863,40042,863,400


Major Boilerplate Changes From FY 2015-16

Sec. 3. Definitions – REVISEDSenate adds a new definition for "community district" as defined under Part B of the Revised School Code, as proposed in theDetroit Public Schools legislative package. Conference concurs with Senate.

Sec. 6. Pupil Membership Definitions – REVISEDExecutive revises pupil membership blend in (4) from 90% of the October count plus 10% of the prior February count to 50% fallcount plus 50% prior February count. Caps the number for which a district may claim a nonpublic school pupil membership, for the purposes of receiving state aid, at no more than 1/3 of an FTE for grades 1 to 12 to align it with Sec. 166b, which requires that a nonpublic student be part-time and limited to nonessential elective courses. (See also Sec. 166b below). Strikes language added in FY 2015-16 that would count allow a student to be counted as homeless if he or she was counted in membership in FY2014-15 even if the student didn't meet the Federal homeless definition. House revises pupil membership blend in (4) to 85% of the current October count plus 15% of the previous October count. Doesnot cap the number of FTEs a nonpublic school pupil membership. House concurs to strike the homeless exception added in FY2015-16. Adds that for a special education student who was expelled on the pupil count day but reinstated after, the district'smembership shall be adjusted to count the student. Senate revises pupil membership blend in (4) to 75% of pupils counted on the October count day plus 50% of pupils counter onthe prior February count day. Revises the proposed cap on nonpublic school FTEs to 1/2 of an FTE. Expands the pupils allowed in an alternative education program to be educated until age 22 as long as program is "primarily focused on educating pupils with extreme barriers to education such as being homeless…" rather than the pupil actually is homeless. Revises the prohibition onestablishing an instructional site within the boundaries of another district to provide an exception for the Michigan Youth Challenge Program (MYCP). Revises one of the count days for the MYCP, which is a residential 11-month program from the fourthWednesday in July to the fourth Wednesday in August. Conference maintains current law pupil membership blend; includes no cap on nonpublic school FTEs; concurs with House toadjust memberships for expelled, but reinstated, special education students; concurs with Senate on alternative educationprograms primarily focused on pupils with extreme barriers to education; concurs with Senate to allow MYCP to establish anexisting instructional site in another district.

Sec. 11r. Distressed District Emergency Grant Fund – REVISEDConference provides that $2.8 million of the $3.8 million remaining in the fund shall lapse to the School Aid fund for FY 2015-16.

Sec. 19. Reporting Requirements – REVISEDExecutive deletes legislative intent that MDE and CEPI begin implementing statewide standard reporting requirements for districts in 2016-17. House concurs with Executive. Senate requires that MDE and CEPI begin implementing statewide standard reporting requirements in 2016-2017 and requires that districts and ISDs implement beginning in FY 2017-18 or whenever a district or ISD updates its education data reportingsystem, whichever is later. Concurs with Senate.

Sec. 20. Foundation Allowance Calculation – REVISEDExecutive increases minimum foundation to $7,511 and the basic foundation to $8,229; makes adjustments to reflect Section 20j.House concurs with Executive. Senate concurs with Executive and adds that a community district would have a foundation allowance equal to the qualifying school district that it is replacing. Also, provides that for a district receiving a consolidation grant under Sec. 22g, for the first two years, its new foundation allowance would be the pupil weighted average plus $300. Conference concurs with Executive, House, and Senate on foundation allowance increases, and includes adjustments forcommunity district.

Sec. 20g. Dissolved District Transition Grant – REVISEDSenate adds legislative intent that $660,000 from the FY 2013-14 work project be used to pay off the former Buena Vista Districtdebt because voters twice rejected a reauthorization of its nonhomestead school operating mills. Conference provides intent to lapse $660,000 in work project funds and includes an FY 2016-17 appropriation to pay off theBuena Vista debt.



Sec. 20m (20j). Foundation Calculations for Hold Harmless Districts – NEWExecutive due to an inflationary cap on Hold Harmless (HH) District Foundation Allowances, which was put in statute along withthe school funding reforms tied to Proposal A in 1994, HH districts (currently foundation allowances greater than $8,169) would be capped at increases ranging from $8-$15. The Executive budget reintroduces former Section 20j, which would allow thedifference between each HH district's inflationary increase and the $60 increase in the State Maximum Guaranteed foundationallowance to be allocated under a separate calculation than its foundation calculation in Sec. 20. House concurs with Executive. Senate concurs with Executive but moves to a categorical in Section 20f rather than funding as a foundation allowance adjustment. Conference concurs with Executive and House but renames it Section 20m.

Sec. 21f. Virtual Classes – REVISED Executive requires a district to provide written notification and a description of appeal process if denying enrollment. Also

requires a district if disallowing a course for sufficient rigor to "enroll" a pupil in an alternative course, rather than "makea reasonable effort to assist" a student in finding an alternative. House concurs. Senate maintains current law but revises to allow the primary district to determine if an alternative course if of acceptable rigor and quality. Conference concurs with Executive and House.

Executive requires primary enrolling districts to provide a student enrolled in more than 2 virtual courses per term withhardware, software, and internet access without charge to the pupil, in addition to the expenses paid for the virtual courseunder (9), currently 6.67% of the minimum foundation. House and Senate do not include. Conference concurs with House and Senate.

Executive requires MDE to establish standards for appropriate hardware, software, and internet access and to establishminimum requirements to count a pupil in a virtual course in a district's pupil membership, for the purpose of receivingof state aid. House maintains current law. Senate concurs with Executive. Conference concurs with Executive and Senate but adds that the pupil membership standards shall be as in the pupil accounting manual in FY 2015-16 or subsequently amended by MDE if MDE notifies the Legislature of amendments atleast 60 days before any changes take effect.

Executive deletes requirement that online courses offered by community colleges generate postsecondary credit. House maintains current law. Senate concurs with Executive. Conference concurs with House.

Executive deletes provision allowing district to deny enrollment in online course if request does not occur within sametimelines established for enrollment and schedule changes for regular courses. House concurs. Senate maintains current law. Conference concurs with Senate.

Sec. 25e. Pupil Transfer Process – RETAINEDExecutive repeals this section and eliminates the pupil transfer process, which currently allows districts to transfer a portion of apupil membership FTE, and thus the state aid funding tied to it, if a pupil transfers from one district to another between the Fallcount date and the following February count date. House concurs with Executive. Senate maintains current law. Conference retains the pupil transfer process but only for pupils that enroll in a strict discipline academy after the pupil membershipcount date.

Sec. 32d. Great Start Readiness Program (GSRP) – REVISEDExecutive prioritizes children who are homeless, in foster care, or have an IEP that requires preschool as if they are in the lowestincome quintile. Reduces program eligibility notification requirements to community-based providers to those that are currently non-participating and to just one notice, which could be done electronically. House concurs with Executive and revises the cap on ISD administration expenses from either 7% or 4% depending on whether or not the ISD is subcontracting services to 5% either way, and eliminates the 4% cap for subrecipient administration costs and instead counts them as direct services. Senate concurs with Executive and revises the cap on ISD administration expenses from either 7% or 4% depending on whetheror not the ISD is subcontracting services to 4% either way, and eliminates the 4% cap for subrecipient administration costs and instead counts them as program costs or contracted fees for service. Also, allows a Head Start grantee or delegate in a blended Head Start GSRP program to count toward the 30% of slots that must be allocated to community-based providers but excludes children in a pure Head Start program from counting toward the 30%. Conference concurs with Senate.



Sec. 39. Great Start Readiness Program Formula – REVISEDExecutive revises application and formula to base it on number of half-day slots filled rather children served such that the hold harmless provision, guaranteeing an ISD at least its prior slot allocation, would include slots used to provide full-day programs. House, Senate, and Conference concur with Executive.

Sec. 39a. Federal Funds – REVISED Senate adds that for the purposes of funding Title I grants, MDE shall allocate an amount of Title I, Part A funds to a strict discipline academy equal to what it would have received if it were included under Part D or what it would receive under Part A, whichever is greater. Conference concurs with Senate.

Sec. 51a(15). Special Education Penalty – REVISEDExecutive deletes legislative intent that, beginning in FY 2016-17, would penalize a district, PSA, or ISD by 10% of its total stateaid if it does not comply with the process for special education services for PSA pupils under subsection (14) or federal regulations.House and Senate maintain the penalty and implement it beginning in FY 2016-17. Conference concurs with House and Senate.

Sec. 101. Days and Hours of Instruction – REVISEDExecutive deletes district reports of days and hours of instruction and replaces with district certification to MDE that it is in fullcompliance or district reports to MDE for each instance of noncompliance. House, Senate, and Conference concur with Executive.

Sec. 104b. Assessments – REVISED Executive revises to update NCLB references with ESSA references. House repeals this section, which requires that districts administer the Michigan Merit Exam including a college entrance test(SAT, formerly ACT), a work skills test (WorkKeys), and a state summative assessment (M-STEP). Senate concurs with Executive. Conference concurs with Executive and Senate.

Sec. 104c. Assessments – REVISED Executive revises to require fall and spring assessments in grades K to 2, and eliminates the kindergarten entry assessment. House repeals this section. Senate revises to require MDE to field test a kindergarten readiness assessment (KRA) to replace the kindergarten entryassessment (KEA) and work with at least 3 ISDs and their constituent districts to participate in the KRA. Conference concurs with Executive.

Sec. 107. Adult Education – REVISED Executive revises eligible programs to add adult secondary education programs, eliminate job- or employment-related programs, and revise GED to high school equivalency test prep programs. Deletes all current participant eligibility criteria, and replaces with either a) is at least 20 years of age or b) is an out-of-school youth as defined in federal Workforce Innovation and Opportunity Act.Deletes FTE funding formula based on 80% enrollment and 20% completion. Makes payments based on statewide allocation criteria including 3-year average enrollments, census data, and local needs as well as participant completion data, and allowableexpenditures. House concurs with Executive except maintains current law in regards to participant eligibility criteria. Senate maintains current law except for the following revisions: freezes the formula at the current split of 2/3 old method, 1/3 newmethod and deletes formula to continue moving toward a new method in future fiscal years. Conference concurs with Executive, but revises eligibility to either a) is at least 20 years old or b) is at least 18 years old and his/her graduating class has graduated. Concurs with Senate to freeze formula phase-in again, but for just one year rather than permanently.

Sec. 166. Penalty for Family Planning – RETAINEDExecutive repeals this section. House revises the penalty under which a district currently forfeits 5% of its total state aid if a board member or staff distributes family planning drugs or devices or makes referrals for abortions. Instead it would require a district to adopt a disciplinary policy for school officials or staff for violations of MCL 380.1507 (regarding Sex Education and prohibits distribution of family planning drugs or devices) or for making abortion referrals. A district that fails to adopt a disciplinary policy would forfeit $100,000 of its state aid. The policy must create financial penalties for school officials, staff, or contractors and require that penalties be negotiated in collective bargaining agreements. Senate maintains current law. Conference concurs with House but does not include penalties for contractors or references to collective bargaining agreements.



Sec. 166b. Nonpublic Students – REVISED Executive revises to clarify that a district may count nonpublic students as FTEs, to receive state aid, for nonessential, electivecourses "that are offered AND BEING PROVIDED" to full-time pupils in the same grade level or age group during regularlyscheduled school hours. House maintains current law. Senate maintains current law and adds that MDE must provide a uniform definition of nonessential elective courses. Conference maintains current law and adds that MDE shall convene a workgroup to examine the issue of a uniform definition of nonessential elective courses and a uniform definition of par-time pupil.

Sec. 167a. Expelled or Suspended Pupils – NOT INCLUDEDHouse adds language that require a district to implement a plan to reduce expulsions and suspensions exceeding ten days, andprovides legislative intent to reduce state aid in FY 2017-18 for districts that have not implemented such a plan. Senate does not include. Conference concurs with House.

Flint-related Supplemental Recommendations for FY 2015-16 Appropriations FY 2015-16

Recommendation

1. Flint Declaration of Emergency (Sec. 11o) – NEWExecutive adds $9.2 million to provide universal Early On testing to identify and provide services to children 0-4 with potential developmental delays due to lead exposure. House concurs with Executive. Senate does not include FY 2015-16 adjustments. Conference concurs with Executive and House but expands to provide early intervention services and summer Great Start Readiness preschool programs.

Gross GF/GP

$9,200,000$9,200,000

Other Supplemental Recommendations for FY 2015-16 Appropriations FY 2015-16

Recommendation

1. State School Reform/Redesign (Sec. 21a) – NEWExecutive adds $1.0 million to pay CEOs appointed by the School Reform/Redesign Office (SRRO) to take over low performing schools. House and Senate do not include. Conference does not include this section.

Gross Restricted

$00

2. Statewide School Water Testing (Sec. 78) – NEWExecutive adds $9.0 million to test school building water systems for lead. House and Senate do not include. Conference concurs with House and Senate.

Gross Restricted

$00

3. Special Education (Secs. 51a, 51c, 51d, 53a, 54, and 56) Executive increases the state share of court-mandated special education costs to a total of $947.2 million to reflect updated estimates based on actual FY 2014-15 costs. House concurs with Executive. Senate does not include FY 2015-16 adjustments. Conference concurs with Executive and House.

Gross Restricted

$26,700,00026,700,000

4. Foundation Allowances (Secs. 22a and 22b) Executive reduces the state share of foundation costs by $64.7 million to a total of $8.9 billion to reflect January revised consensus estimates. House concurs with Executive. Senate does not include FY 2015-16 adjustments. Conference reduces by $57.7 million to $9.0 billion to reflect May consensus costs estimates.

Gross Restricted

($57,700,000)(57,700,000)

5. School Bond Loan Redemption Fund (Sec. 11j) Executive reduces costs paid on behalf of districts in the school bond loan program to $99.5 million to reflect lower costs from an increased number of districts refinancing bonds. House concurs with Executive. Senate does not include FY 2015-16 adjustments. Conference reduces to $10.5 million to reflect May consensus cost estimates.

Gross Restricted

($116,000,000)(116,000,000)

6. CTE Early/Middle Colleges (Sec. 61b) Conference reduces line to $1.0 million based on FY 2015-16 expenditures.

Gross Restricted

($9,000,000)(9,000,000)


Other Supplemental Recommendations for FY 2015-16 Appropriations FY 2015-16

Recommendation

7. Renaissance Zone Reimbursements (Sec. 26a) Executive reduces reimbursements to $20.0 million based on actual FY 2014-15 costs. House concurs with Executive. Senate does not include FY 2015-16 adjustments. Conference concurs with Executive and House.

Gross Restricted

($6,300,000)(6,300,000)

8. Early Literacy (3rd Grade Reading) Initiative (Sec. 35 and 35a) Conference eliminates $1.0 million for parent university and reduces added instructional time by $3.9 million to a total of $13.6 million to reflect FY 2015-16 expenditures.

Gross Restricted

($4,900,000)(4,900,000)

9. School Breakfast (Sec. 31f) Executive reduces school breakfast costs to $2.5 million based on actual FY 2014-15 program costs. Cost reductions due to increased federal funding for in FY 2014-15. House concurs with Executive. Senate does not include FY 2015-16 adjustments. Conference concurs with Executive and House.

Gross Restricted

($3,125,000)(3,125,000)

10. Cash Flow Borrowing (Sec. 11m) Conference reduces by $1.0 million to a total of $1.0 million to reflect May cost estimates.

Gross Restricted

($1,000,000)(1,000,000)

11. Juvenile Detention Facilities (Sec. 24a) Executive reduces the costs of education expenses in juvenile detention facilities operated by DHHS to reflect the closure of the Maxey facility. House concurs with Executive. Senate does not include FY 2015-16 adjustments. Conference concurs with Executive and House.

Gross Restricted

($888,800)(888,800)

12. Promise Zone Payments (Sec. 26c) Executive reduces payments to promise zone authorities based on updated cost estimates. Promise zones receive half the growth in the State Education Tax (SET) revenue from property within the zone compared to base year SET revenues. House concurs with Executive. Senate does not include FY 2015-16 adjustments. Conference concurs with Executive and House.

Gross Restricted

($332,000)(332,000)


HB 4115 (PA 85) SB 134 (PA 139)

EnactedChange from

YTDRevised

SupplementalChange from

FY16 YTD Executive

RecommendationChange from

FY16 YTDHB 5291

House PassedChange from

FY16 YTDSB 801

Senate PassedChange from

FY16 YTD Conference

Sec.11j School Bond Redemption Fund $126,500,000 ($116,000,000) $10,500,000 $126,500,000 $126,500,000 $126,500,000 $126,500,00011m Cash Flow Borrowing Costs $2,000,000 ($1,000,000) $1,000,000 $1,000,000 $3,000,000 $1,000,000 $3,000,000 $1,000,000 $3,000,000 $1,000,000 $3,000,00011o/11s Flint Declaration of Emergency - NEW $0 $9,200,000 $9,200,000 $10,142,600 $10,142,600 $10,142,600 $10,142,600 $10,142,600 $10,142,600 $10,142,600 $10,142,60020f Categorical Offset Payments $18,000,000 $18,000,000 $18,000,000 $18,000,000 $9,000,000 $27,000,000 $18,000,00020g Dissolved District Transition Grants $2,200,000 ($1,000,000) $1,200,000 $2,200,000 $2,200,000 $2,200,000 ($340,000) $1,860,00021 State School Reform/Redesign - NEW $0 $0 $5,000,000 $5,000,000 $100 $100 $5,000,000 $5,000,000 $5,000,000 $5,000,00021g Competency Based Funding Pilot - NEW $1,000,000 $1,000,000 $0 $500,000 $500,00022a Foundations: Proposal A Obligation Payment $5,281,700,000 ($21,700,000) $5,260,000,000 ($75,700,000) $5,206,000,000 ($63,200,000) $5,218,500,000 ($79,400,000) $5,202,300,000 ($76,700,000) $5,205,000,00022b Foundations: Discretionary Payment $3,728,000,000 ($36,000,000) $3,692,000,000 $172,000,000 $3,900,000,000 $172,000,000 $3,900,000,000 $91,900,000 $3,819,900,000 $172,000,000 $3,900,000,00022d Isolated District Funding $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,00022g Consolidation Innovation Grants $5,000,000 $5,000,000 $5,000,000 $5,000,000 $1,500,000 $6,500,000 ($2,000,000) $3,000,00022i Technology Infrastructure Improvement Grants $23,500,000 $23,500,000 ($23,500,000) $0 ($23,500,000) $0 ($23,500,000) $0 ($23,500,000) $024 Court-Placed Pupils $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,00024a Juvenile Detention Facility Programs $2,189,800 ($888,800) $1,301,000 ($861,700) $1,328,100 ($861,700) $1,328,100 ($861,700) $1,328,100 ($861,700) $1,328,10024c Youth ChalleNGe Program $1,497,400 $1,497,400 $25,000 $1,522,400 $25,000 $1,522,400 $235,000 $1,732,400 $135,000 $1,632,40025f Strict Discipline Academy $1,000,000 $1,000,000 ($750,000) $250,000 ($750,000) $250,000 $1,000,000 ($250,000) $750,00025g Dropout Recovery Programs $1,000,000 $1,000,000 ($750,000) $250,000 ($750,000) $250,000 $1,000,000 ($250,000) $750,00026a Renaissance Zone Reimbursement $26,300,000 ($6,300,000) $20,000,000 ($6,300,000) $20,000,000 ($6,300,000) $20,000,000 ($6,300,000) $20,000,000 ($6,300,000) $20,000,00026b PILT Reimbursement $4,276,800 $4,276,800 $128,300 $4,405,100 $128,300 $4,405,100 $128,300 $4,405,100 $128,300 $4,405,10026c Promise Zone Funding $610,000 ($332,000) $278,000 $390,000 $1,000,000 $390,000 $1,000,000 $390,000 $1,000,000 $390,000 $1,000,00031a "At Risk" Pupil Support $378,988,200 $378,988,200 $378,988,200 $18,000,000 $396,988,200 $378,988,200 $378,988,20031a(7) School Based Health Centers $5,557,300 $5,557,300 $5,557,300 $5,557,300 $5,557,300 $5,557,30031a(8) Hearing and Vision Screening $5,150,000 $5,150,000 $5,150,000 $5,150,000 $5,150,000 $5,150,00031b Year-round Instruction Grants - NEW $0 $0 $3,500,000 $3,500,000 $0 $1,500,000 $1,500,00031c Gang Prevention and Intervention Programs $1,000,000 $1,000,000 ($1,000,000) $0 $3,000,000 $4,000,000 ($1,000,000) $0 $2,000,000 $3,000,00031d State School Lunch Programs $22,495,100 $22,495,100 $22,495,100 $22,495,100 $22,495,100 $22,495,10031d Federal School Lunch Programs $513,200,000 $513,200,000 $513,200,000 $513,200,000 $513,200,000 $513,200,00031f School Breakfast Program $5,625,000 ($3,125,000) $2,500,000 ($3,125,000) $2,500,000 ($3,125,000) $2,500,000 ($3,125,000) $2,500,000 ($3,125,000) $2,500,00031h Cooperative Education Grant $300,000 $300,000 ($300,000) $0 ($300,000) $0 $300,000 $0 $300,00031j Local Produce in School Meals - NEW $0 $0 $0 $0 $500,000 $500,000 $250,000 $250,00032d Great Start Readiness Program $243,900,000 $243,900,000 $243,900,000 $243,900,000 $243,900,000 $243,900,00032p Early Childhood Block Grants $13,400,000 $13,400,000 $13,400,000 $13,400,000 $13,400,000 $13,400,00032q Early Learning Cooperative - NEW $0 $0 $0 $0 $175,000 $175,000 $175,000 $175,00035 Early Literacy Implementation $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,00035a(2) Early Literacy Parents University Pilot $1,000,000 ($1,000,000) $0 ($1,000,000) $0 ($1,000,000) $0 ($1,000,000) $0 ($1,000,000) $035a(3) Early Literacy Professional Development $950,000 $950,000 $950,000 $950,000 $950,000 $950,00035a(4) Early Literacy Diagnostic Tools $1,450,000 $1,450,000 $1,450,000 $1,450,000 $1,450,000 $1,450,00035a(5) Early Literacy Teacher Coaches $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,00035a(6) Early Literacy Added Instructional Time $17,500,000 ($3,900,000) $13,600,000 $17,500,000 $17,500,000 $17,500,000 $17,500,00035a(7) Early Literacy - Michigan Education Corps $1,000,000 $1,000,000 ($1,000,000) $0 ($1,000,000) $0 $1,000,000 $1,000,00035a(8) Early Literacy Teacher Certification Test $500,000 $500,000 ($500,000) $0 ($500,000) $0 ($500,000) $0 ($500,000) $039a(1) Federal NCLB/ESSA Grant Funds $779,076,400 $779,076,400 $42,863,500 $821,939,900 $42,863,500 $821,939,900 $42,863,500 $821,939,900 $42,863,500 $821,939,90039a(2) Other Federal Funding $30,800,000 $30,800,000 $30,800,000 $30,800,000 $30,800,000 $30,800,00041 Bilingual Education Grants $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,00043 Teacher Certification Test Rewrite $1,800,000 $1,800,000 ($1,800,000) $0 ($1,800,000) $0 ($1,800,000) $0 ($1,800,000) $051a(1) Special Education - Federal Reimbursement $370,000,000 $370,000,000 $370,000,000 $370,000,000 $370,000,000 $370,000,00051a(2) Special Ed ISD Foundation and Costs $251,800,000 $11,700,000 $263,500,000 $19,800,000 $271,600,000 $19,800,000 $271,600,000 $19,800,000 $271,600,000 $19,800,000 $271,600,00051a(3) Special Ed ISD Hold Harmless Payment $1,300,000 ($300,000) $1,000,000 ($200,000) $1,100,000 ($200,000) $1,100,000 ($200,000) $1,100,000 ($200,000) $1,100,00051a(6) Special Ed Admin Rules Changes $2,200,000 $2,200,000 $2,200,000 $2,200,000 $2,200,000 $2,200,00051a(11) Special Ed Foundations for Non Sec. 52 to ISDs $3,300,000 $500,000 $3,800,000 $400,000 $3,700,000 $400,000 $3,700,000 $400,000 $3,700,000 $400,000 $3,700,00051c Special Ed Headlee Obligation (Durant) $610,000,000 $14,800,000 $624,800,000 $34,500,000 $644,500,000 $34,500,000 $644,500,000 $34,500,000 $644,500,000 $34,500,000 $644,500,00051d Special Education - Other Federal Grants $71,000,000 $71,000,000 $71,000,000 $71,000,000 $71,000,000 $71,000,00053a Special Ed for Court Placed Pupils $10,500,000 $10,500,000 $10,500,000 $10,500,000 $10,500,000 $10,500,00054 Special Ed Michigan School Blind/Deaf $1,688,000 $1,688,000 $1,688,000 $1,688,000 $1,688,000 $1,688,00054b Special Education Task Force Reforms - NEW $0 $0 $1,370,000 $1,370,000 $1,370,000 $1,370,000 $1,370,000 $1,370,000 $1,125,000 $1,125,00055 Conductive Learning Study $150,000 $150,000 $150,000 $150,000 $150,000 $150,00056 Special Ed ISD Millage Equalization $37,758,100 $37,758,100 $37,758,100 $37,758,100 $37,758,100 $37,758,10059 Gifted & Talented Programs - NEW $0 $0 $0 $0 $100 $100 $061a Career & Tech Ed Programs $36,611,300 $36,611,300 $36,611,300 $115,000 $36,726,300 $36,611,300 $79,000 $36,690,30061b Career & Tech Ed Early/Middle College $10,000,000 ($9,000,000) $1,000,000 $5,000,000 $15,000,000 $5,000,000 $15,000,000 $10,000,000 ($1,000,000) $9,000,00061c Career & Tech Ed Equipment Upgrades - NEW $0 $0 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $3,200,000 $3,200,00061d Innovative Educational Pipeline Program - NEW $0 $0 $0 $0 $500,000 $500,000 $061e Restaurant Management and Culinary Training - NEW $0 $0 $0 $0 $100,000 $100,000 $0

FY 2016-17FY 2016-17

SCHOOL AID LINE ITEM SUMMARY

FY 2016-17FY 2016-17FY 2015-16


HB 4115 (PA 85) SB 134 (PA 139)

EnactedChange from

YTDRevised

SupplementalChange from

FY16 YTD Executive

RecommendationChange from

FY16 YTDHB 5291

House PassedChange from

FY16 YTDSB 801

Senate PassedChange from

FY16 YTD Conference

Sec.62 ISD Vocational Education Millage Equalization $9,190,000 $9,190,000 $9,190,000 $9,190,000 $9,190,000 $9,190,00063 ISD/Health Department Partnership for CTE/Health - NEW $0 $0 $0 $0 $500,000 $500,000 $250,000 $250,00064b Dual Enrollment Incentive Payments $1,750,000 $1,750,000 $1,750,000 $1,750,000 $1,750,000 $1,750,00065 Detroit PreCollege Engineering $340,000 $340,000 $340,000 $340,000 $340,000 $340,00067 Career and College Readiness Tools $3,600,000 $3,600,000 ($550,000) $3,050,000 ($550,000) $3,050,000 ($550,000) $3,050,000 ($550,000) $3,050,00074 School Bus Driver Safety Instruction $1,625,000 $1,625,000 $1,625,000 $1,625,000 $1,625,000 $1,625,00074 School Bus Inspections $1,690,700 $1,690,700 $4,900 $1,695,600 $4,900 $1,695,600 $4,900 $1,695,600 $4,900 $1,695,60078 Statewide School Water Testing - NEW $0 $0 $9,000,000 $9,000,000 $0 $0 $081 ISD General Operations Support $67,108,000 $67,108,000 $1,074,000 $68,182,000 $1,074,000 $68,182,000 $1,074,000 $68,182,000 $67,108,00094 Advanced Placement (AP) Incentive Program $250,000 $250,000 $250,000 $250,000 $250,000 $250,00094a Center for Educational Performance and Information $11,967,000 $11,967,000 $206,200 $12,173,200 $206,200 $12,173,200 $206,200 $12,173,200 $206,200 $12,173,20094a Center for Educational Performance and Info - Federal $193,500 $193,500 $193,500 $193,500 $193,500 $193,50095a Educator and Administrator Evaluations $0 $0 $10,000,000 $10,000,000 $0 $100 $100 $095b Statewide Student Growth Tool - NEW $0 $0 $100 $100 $0 $098 Michigan Virtual University $7,387,500 $7,387,500 $7,387,500 $7,387,500 ($387,500) $7,000,000 $7,387,50099c Civic Education $60,000 $60,000 ($60,000) $0 ($60,000) $0 $60,000 ($60,000) $099h FIRST Robotics $2,000,000 $2,000,000 $500,000 $2,500,000 $2,000,000 $500,000 $2,500,000 $500,000 $2,500,00099s(2) MiSTEM Grants - Council $50,000 $50,000 $2,475,000 $2,525,000 $50,000 $1,475,000 $1,525,000 $1,000,000 $1,050,00099s(3) MiSTEM Grants - Math and Science Centers - State $2,750,000 $2,750,000 $2,750,000 $2,750,000 $1,000,000 $3,750,000 $2,750,00099s(3) MiSTEM Grants - Math and Science Centers - Federal $5,249,300 $5,249,300 $5,249,300 $5,249,300 $5,249,300 $5,249,30099s(4) MiSTEM Grants - Michigan STEM Partnership $475,000 $475,000 ($475,000) $0 $475,000 ($475,000) $0 ($475,000) $099s(5) MiSTEM Grants - STEM Professional Development $250,000 $250,000 ($250,000) $0 $250,000 ($250,000) $0 ($250,000) $099s(6) MiSTEM Grants - Science Olympiad $250,000 $250,000 ($250,000) $0 $250,000 $250,000 $500,000 $250,00099s(7) MiSTEM Grants - Van Andel Education Institute $250,000 $250,000 ($250,000) $0 $250,000 $250,000 $500,000 $250,00099t Online Algebra Tool - NEW $2,000,000 $2,000,000 $100 $100 $1,500,000 $1,500,000102d Financial Data Analysis Tools $1,500,000 $1,500,000 $1,500,000 $100,000 $1,600,000 $0 $1,500,000 $1,500,000104 Education Assessments - State $43,994,400 $43,994,400 ($10,100,000) $33,894,400 ($21,994,400) $22,000,000 ($8,757,600) $35,236,800 ($10,100,000) $33,894,400104 Education Assessments - Federal $6,250,000 $6,250,000 $6,250,000 $6,250,000 $6,250,000 $6,250,000104d Computer Adaptive Test $4,000,000 $4,000,000 ($4,000,000) $0 ($4,000,000) $0 $5,500,000 $9,500,000 $4,000,000107 Adult Education $25,000,000 $25,000,000 $25,000,000 $25,000,000 $25,000,000 $25,000,000147a MPSERS Cost Offset $100,000,000 $100,000,000 $100,000,000 $100,000,000 $100,000,000 $100,000,000147c MPSERS State Share of Unfunded Liability Payments $893,500,000 $893,500,000 $89,300,000 $982,800,000 $89,300,000 $982,800,000 $89,300,000 $982,800,000 $89,300,000 $982,800,000152a Adair - Database Payment $38,000,500 $38,000,500 $38,000,500 $38,000,500 $38,000,500 $38,000,500152b Nonpublic School Reimbursement - NEW $1,000,000 $1,000,000 $5,000,000 $5,000,000 $2,500,000 $2,500,000

TOTAL APPROPRIATIONS $13,900,654,300 ($164,345,800) $13,736,308,500 $282,457,800 $14,183,112,100 $287,028,600 $14,187,682,900 $206,458,000 $14,107,112,300 $261,187,800 $14,161,842,100

REVENUE BY SOURCEFederal Aid $1,775,769,200 $0 $1,775,769,200 $42,863,500 $1,818,632,700 $42,863,500 $1,818,632,700 $42,863,500 $1,818,632,700 $42,863,500 $1,818,632,700School Aid Fund $12,078,985,100 ($173,545,800) $11,905,439,300 ($16,505,800) $12,062,479,300 ($2,935,100) $12,076,050,000 ($16,505,500) $12,062,479,600 ($26,675,800) $12,052,309,300Community District Trust Fund/Other Restricted Fund $0 $0 $72,000,100 $72,000,100 $72,000,100 $72,000,100 $0 $72,000,100 $72,000,100General Fund/General Purpose $45,900,000 $9,200,000 $55,100,000 $184,100,000 $230,000,000 $175,100,100 $221,000,100 $180,100,000 $226,000,000 $173,000,000 $218,900,000TOTAL REVENUE $13,900,654,300 ($164,345,800) $13,736,308,500 $282,457,800 $14,183,112,100 $287,028,600 $14,187,682,900 $206,458,000 $14,107,112,300 $261,187,800 $14,161,842,100

FY 2016-17FY 2016-17

SCHOOL AID LINE ITEM SUMMARY

FY 2016-17FY 2016-17FY 2015-16


FY 2016-17: COMMUNITY COLLEGES Summary: Conference Report Article II, Senate Bill 801 (S-1) CR-1

Analyst: Perry Zielak


as of 2/10/16 Executive House Senate Conference Amount %IDG/IDT $0 $0 $0 $0 $0 $0 --Federal 0 0 0 0 0 0 --Local 0 0 0 0 0 0 --Private 0 0 0 0 0 0 --Restricted 256,714,800 260,414,800 260,414,800 260,414,800 260,414,800 3,700,000 1.4GF/GP 131,110,800 138,610,800 141,701,500 138,610,800 135,510,800 4,400,000 3.4

Gross $387,825,600 $399,025,600 $402,116,300 $399,025,600 $395,925,600 $8,100,000 2.1 Notes: (1) FY 2015-16 year-to-date figures include mid-year budget adjustments through February 10, 2016. (2) Appropriation figures for all years include all proposed appropriation amounts, including amounts designated as "one-time." Overview The Community Colleges budget supports the 28 public community colleges located throughout the state. Community colleges offer a wide variety of educational programs, including traditional two-year transfer programs, associates' degrees, career and technical education, developmental and remedial education, continuing education, and, after 2012, baccalaureate programs in a limited number of areas. The colleges are supported primarily through a combination of state aid, local property tax revenue, and tuition and fees. NOTE: Information on House budget action in this document is based on House Bill 5291 as passed by the House. Information on Senate budget action is based on Senate Bill 801 as passed by the Senate.



(as of 2/10/16)


Change

1. Community College Operations Grants Executive increases funding for community college operations grants by $7.5 million GF/GP, to be distributed according to a revised performance funding formula. Shift of $50.7 million from School Aid Fund (SAF) to GF/GP. Projected increases for individual community colleges range from 1.7% to 3.8%. Total funding would be $318.9 million ($133.5 million GF/GP). House increases operations grant funding by $10.6 million (3.4%), to be distributed under the revised performance funding formula created by the 2015 Performance Funding Task Force. Projected increases for individual colleges range from 2.7% to 4.9%. Total funding would be $322.1 million: $185.5 million School Aid Fund (SAF), $136.6 million GF/GP. Senate concurs with Executive increase of $7.5 million GF/GP (2.4%), but distributes funding under the revised performance funding formula created by the 2015 Performance Funding Task Force. Projected increases for individual colleges range from 1.9% to 3.5%. Total funding would be $318.9 million: $185.5 million SAF, $133.5 million GF/GP. Conference increases operations grant funding by $4.4 million GF/GP (1.4%) and concurs with the House and Senate on using the revised performance funding formula. Projected increases for individual community colleges range from 1.1% to 2.0%. Total funding would be $315.9 million: $185.5 million SAF, $130.4 million GF/GP.

GrossRestricted

GF/GP

$311,492,000 236,181,200 $75,310,800

$4,400,000(50,700,000)$55,100,000




(as of 2/10/16)


Change

2. Michigan Public School Employees' Retirement System (MPSERS) Executive provides additional $3.7 million SAF for the state's share of colleges' unfunded liability to MPSERS, bringing total funding to $73.2 million SAF. There is a $56 million increase of SAF, used to account for the $3.7 million increase and an offset of a $52.3 million GF/GP reduction. The state's share is the difference between the actuarial accrued liability to the system and the employer contribution cap of 20.96% of payroll set by the Public School Employees Retirement act (MCL 38.1341). House concurs. Senate concurs. Conference concurs.

GrossRestricted

GF/GP

$69,500,000 17,200,000

$52,300,000

$3,700,00056,000,000

($52,300,000)

3. Renaissance Zone Reimbursements Executive replaces $1.6 million SAF reduction with $1.6 million GF/GP increase, resulting in entire $5.1 million reimbursement program funded by GF/GP. House concurs. Senate concurs. Conference concurs.

GrossRestricted

GF/GP

$5,100,000 1,600,000

$3,500,000

$0(1,600,000)$1,600,000


Sec. 206. Community Colleges Activities Classification Structure (ACS) Data – REVISED Executive requires Michigan community colleges to report ACS data to the Center for Educational Performance and Information(CEPI). House concurs. Senate concurs. Conference concurs.

Sec. 208. Self-Liquidating Projects – RETAINEDProhibits colleges from using state funds for construction or maintenance of self-liquidating projects. Requires colleges to comply with Joint Capital Outlay Subcommittee (JCOS) use and finance policy for any capital outlay project. Subjects colleges that fail to comply with a penalty of 1% of the operations funding for each violation. Executive deletes. House retains. Senate retains. Conference retains.

Sec. 209. Community College Transparency – RETAINEDExecutive deletes from college transparency reporting requirements a requirement to post the estimated cost resulting from theAffordable Care Act. Also deletes a provision authorizing state budget director to withhold payment from a college that failed to comply with the reporting requirements. House concurs. Senate retains current law. Conference concurs with Senate.

Sec. 210b. Colleges and Universities Transfer Agreement – REVISEDExecutive deletes legislative intent language and revises to require the Michigan Community College Association and theMichigan Association of State Universities issue a report on the implementation of the transfer agreement between communitycolleges and state universities. House revises language to require report on the implementation of the transfer agreement. Senateincludes similar language to House but adds reporting requirements for the block transfer agreement found in Sec. 210c.Conference concurs with Senate.

Sec. 210c. Block Transfer Study Committee – DELETEDEstablishes study committee to develop a process to improve the transferability and applicability of associates' degrees as a block of credits between community colleges and public universities on a statewide basis. Executive deletes. House revises language to require the Michigan Community College Association and the Michigan Association of State Universities to issue a report onprogress of implementing the study committee findings and recommendations. Senate deletes but moves reporting requirements to Sec. 210b. Conference concurs with Senate.

Sec. 210e. Academic Program Partnerships – NEWSenate adds language that requires the Michigan Community College Association, the Michigan Association of State Universities,and the Michigan Independent Colleges and Universities to submit a report detailing the number of academic programpartnerships between community colleges, public universities, and private colleges and universities. Conference concurs.

Sec. 212. Cost Containment Initiatives – REVISEDEncourages colleges to evaluate and pursue efficiency and cost-containment measures, including joint ventures, consolidatingservices, program collaboration, increasing web-based instruction, improving energy efficiency, eliminating low-volume/high-cost instructional programs, self-insurance and group purchasing. Executive deletes. House retains. Senate retains with minor wording changes. Conference concurs with Senate.

Sec. 217. Activities Classification Structure (ACS) Data – REVISEDExecutive changes responsibility of drafting the ACS report from the Workforce Development Agency to the Center for EducationalPerformance and Information (CEPI). House concurs. Senate concurs. Conference concurs.



Sec. 223. North American Indian Tuition Waiver – REVISEDRequires colleges to report to WDA on number and monetary value of Indian tuition waivers granted in previous fiscal year. House revises to require colleges to report to the Department of Civil Rights on number of applications received and approved,number and monetary value of waivers, number of waiver students who withdraw, and the number of waiver students whocompleted a degree or certificate program. Senate retains current language. Conference concurs with House.

Sec. 227. Community College Automobile Purchases – RETAINEDForbids lease or purchase of foreign-made vehicles if vehicles made in Michigan or elsewhere in the U.S. are competitively pricedand of comparable quality. Executive deletes. House retains. Senate retains. Conference retains.

Sec. 228. Communication with the Legislature – RETAINEDForbids a community college from taking disciplinary action against an employee for communicating with the legislature. Executivedeletes. House retains. Senate retains. Conference retains.

Sec. 229a. State Building Authority (SBA) Rent Payments – REVISEDExecutive updates itemized list of community college capital outlay projects on which the state will pay SBA rent in FY 2016-17. Funding for SBA rent is appropriated under the General Government budget. House concurs. Senate concurs. Conferenceconcurs.

Sec. 230. Performance Funding Formula – REVISEDExecutive modifies the formula for distributing performance-based funding: reduces the across-the-board adjustment from 50% to 30%, increases the contact hours component from its current 10% unweighted to 30% weighted for health andtechnology/industrial fields, increases the performance based component from its current 17.5% based on weighted degree and certificate completions to 20%, adds 10% for completion improvement, reduces the local strategic value component from 15% to 5% and lowers the administrative costs component from 7.5% to 5%. House modifies the formula according to the recommendations from the 2015 Performance Task Force: reduces the across-the-board adjustment from 50% to 30%, increases the contact hours component from its current 10% unweighted to 30% weightedfor health and technology/industrial fields, adds 10% for completion performance improvement, adds 10% for performancecompletion number, adds 10% for performance completion rate, reduces the local strategic value component from 15% to 5%and lowers the administrative costs component from 7.5% to 5%. Senate also modifies the formula according to the recommendations from the 2015 Performance Task Force, concurring with House with minor wording differences. Conference concurs with House.

Sec. 230a. Performance Indicators Task Force – DELETEDRequires creation by October 15, 2015 of a task force to make recommendations on community college performance metrics witha report due January 15, 2016. Executive deletes. House concurs. Senate concurs. Conference concurs.


FY 2016-17 Community College Performance Funding Increases

New Money: $4,400,000 30% 10% 10% 10% 30% 5% 5% 100%

FY 2015‐16 Base SustainabilityPerformance‐ Improvement

Performance‐ Completion

Number

Performance‐Completion

RateContact Hours Administrative

Local Strategic Value

Total Performance

Funding% Change from FY16

FY 2016‐17 Appropriation

Alpena $5,464,400 $23,156 $23,971 $4,860 $6,175 $11,415 $6,820 $3,859 $80,300 1.5% $5,544,700Bay de Noc $5,490,200 $23,266 $6,204 $6,029 $12,231 $13,909 $5,153 $3,878 $70,700 1.3% $5,560,900Delta $14,704,000 $62,311 $16,678 $29,868 $16,616 $58,152 $9,689 $10,385 $203,700 1.4% $14,907,700Glen Oaks $2,551,100 $10,811 $2,883 $3,747 $8,949 $7,442 $202 $1,802 $35,800 1.4% $2,586,900Gogebic $4,509,900 $19,111 $15,019 $3,230 $13,106 $8,692 $5,556 $3,185 $67,900 1.5% $4,577,800Grand Rapids $18,187,300 $77,072 $25,309 $22,562 $20,552 $94,895 $9,989 $12,845 $263,200 1.4% $18,450,500Henry Ford $21,893,300 $92,777 $26,411 $20,516 $30,819 $86,365 $10,351 $15,463 $282,700 1.3% $22,176,000Jackson $12,245,300 $51,892 $14,742 $13,731 $20,138 $34,843 $8,293 $8,649 $152,300 1.2% $12,397,600Kalamazoo Valley $12,689,400 $53,773 $14,340 $17,815 $20,454 $58,272 $10,887 $8,962 $184,500 1.5% $12,873,900Kellogg $9,950,100 $42,165 $11,244 $12,837 $17,090 $36,647 $10,398 $7,028 $137,400 1.4% $10,087,500Kirtland $3,221,500 $13,652 $3,640 $4,798 $3,640 $12,640 $7,814 $2,275 $48,500 1.5% $3,270,000Lake Michigan $5,417,700 $22,958 $6,304 $5,660 $6,122 $24,303 $5,879 $3,826 $75,100 1.4% $5,492,800Lansing $31,288,200 $132,589 $35,357 $41,122 $41,281 $106,144 $10,612 $22,098 $389,100 1.2% $31,677,300Macomb $33,239,500 $140,858 $37,562 $43,227 $43,449 $142,984 $10,805 $23,476 $442,300 1.3% $33,681,800Mid‐Michigan $4,757,700 $20,162 $6,757 $9,650 $5,376 $24,825 $6,220 $3,360 $76,400 1.6% $4,834,100Monroe County $4,565,600 $19,348 $5,159 $6,718 $5,159 $21,675 $9,787 $3,225 $71,100 1.6% $4,636,700Montcalm $3,280,600 $13,902 $13,469 $4,363 $10,026 $10,809 $7,612 $2,317 $62,500 1.9% $3,343,100Mott $15,901,700 $67,386 $21,448 $21,735 $17,970 $64,770 $9,309 $11,231 $213,800 1.3% $16,115,500Muskegon $9,020,700 $38,227 $27,428 $7,702 $10,194 $29,152 $10,779 $6,371 $129,900 1.4% $9,150,600North Central $3,224,800 $13,666 $12,004 $4,645 $10,232 $13,681 $9,071 $2,278 $65,600 2.0% $3,290,400Northwestern $9,200,500 $38,989 $13,243 $10,117 $10,397 $29,632 $8,604 $6,498 $117,500 1.3% $9,318,000Oakland $21,429,400 $90,811 $24,216 $35,093 $24,216 $145,013 $7,045 $15,135 $341,500 1.6% $21,770,900Schoolcraft $12,706,400 $53,846 $15,218 $23,832 $20,777 $70,798 $9,467 $8,974 $202,900 1.6% $12,909,300Southwestern $6,657,600 $28,213 $7,523 $5,249 $7,523 $17,962 $3,714 $4,702 $74,900 1.1% $6,732,500St. Clair $7,158,000 $30,333 $8,462 $8,427 $14,678 $27,373 $6,945 $5,056 $101,300 1.4% $7,259,300Washtenaw $13,301,100 $56,366 $19,040 $40,843 $20,865 $76,882 $9,510 $9,394 $232,900 1.8% $13,534,000Wayne County $16,989,800 $71,997 $22,017 $29,014 $19,199 $82,516 $7,680 $12,000 $244,400 1.4% $17,234,200West Shore $2,446,200 $10,366 $4,350 $2,611 $2,764 $8,211 $1,808 $1,728 $31,800 1.3% $2,478,000

$311,492,000 $1,320,000 $440,000 $440,000 $440,000 $1,320,000 $220,000 $220,000 $4,400,000 1.4% $315,892,000

Notes:1. The performance improvement metric utilizes improvements in six-year average rates completions for each college from 2007 and 2008 cohorts. Completions metric includes certificates, degrees and transfers.2. Calculations for performance completion number are based on data from IPEDS.3. Calculations for performance completion rate are based on data provided to the Governor's dashboard on completion rates and utilizes six year completions for each college from 2007 and 2008 cohorts.4. Calculations for weighted contact hours are based on data provided by the Workforce Development Agency from FY 2014.5. Adjusted Administrative Cost data are preliminary data provided by the Workforce Development Agency.


FY 2016-17 Community College Operations Grants

CollegeFY 2015‐16 Year

to DatePerformance

Funding IncreaseTotal

Appropriation % ChangePerformance


Appropriation % ChangePerformance


Appropriation%

ChangePerformance


Appropriation%

ChangeAlpena $5,464,400 $162,700 $5,627,100 3.0% $193,200 $5,657,600 3.5% $136,800 $5,601,200 2.5% $80,300 $5,544,700 1.5%Bay de Noc $5,490,200 $100,900 $5,591,100 1.8% $170,100 $5,660,300 3.1% $120,500 $5,610,700 2.2% $70,700 $5,560,900 1.3%Delta $14,704,000 $348,400 $15,052,400 2.4% $490,300 $15,194,300 3.3% $347,200 $15,051,200 2.4% $203,700 $14,907,700 1.4%Glen Oaks $2,551,100 $45,600 $2,596,700 1.8% $86,300 $2,637,400 3.4% $61,100 $2,612,200 2.4% $35,800 $2,586,900 1.4%Gogebic $4,509,900 $117,000 $4,626,900 2.6% $163,400 $4,673,300 3.6% $115,700 $4,625,600 2.6% $67,900 $4,577,800 1.5%Grand Rapids $18,187,300 $444,400 $18,631,700 2.4% $633,600 $18,820,900 3.5% $448,700 $18,636,000 2.5% $263,200 $18,450,500 1.4%Henry Ford $21,893,300 $454,200 $22,347,500 2.1% $680,500 $22,573,800 3.1% $481,900 $22,375,200 2.2% $282,700 $22,176,000 1.3%Jackson $12,245,300 $259,100 $12,504,400 2.1% $366,500 $12,611,800 3.0% $259,600 $12,504,900 2.1% $152,300 $12,397,600 1.2%Kalamazoo Valley $12,689,400 $326,300 $13,015,700 2.6% $444,100 $13,133,500 3.5% $314,500 $13,003,900 2.5% $184,500 $12,873,900 1.5%Kellogg $9,950,100 $209,700 $10,159,800 2.1% $330,700 $10,280,800 3.3% $234,200 $10,184,300 2.4% $137,400 $10,087,500 1.4%Kirtland $3,221,500 $81,800 $3,303,300 2.5% $116,600 $3,338,100 3.6% $82,600 $3,304,100 2.6% $48,500 $3,270,000 1.5%Lake Michigan $5,417,700 $147,900 $5,565,600 2.7% $180,600 $5,598,300 3.3% $127,900 $5,545,600 2.4% $75,100 $5,492,800 1.4%Lansing $31,288,200 $627,100 $31,915,300 2.0% $936,800 $32,225,000 3.0% $663,400 $31,951,600 2.1% $389,100 $31,677,300 1.2%Macomb $33,239,500 $660,700 $33,900,200 2.0% $1,064,800 $34,304,300 3.2% $754,100 $33,993,600 2.3% $442,300 $33,681,800 1.3%Mid‐Michigan $4,757,700 $159,600 $4,917,300 3.4% $183,800 $4,941,500 3.9% $130,100 $4,887,800 2.7% $76,400 $4,834,100 1.6%Monroe County $4,565,600 $113,500 $4,679,100 2.5% $171,100 $4,736,700 3.7% $121,100 $4,686,700 2.7% $71,100 $4,636,700 1.6%Montcalm $3,280,600 $123,400 $3,404,000 3.8% $150,400 $3,431,000 4.6% $106,500 $3,387,100 3.2% $62,500 $3,343,100 1.9%Mott $15,901,700 $376,700 $16,278,400 2.4% $514,700 $16,416,400 3.2% $364,500 $16,266,200 2.3% $213,800 $16,115,500 1.3%Muskegon $9,020,700 $248,000 $9,268,700 2.7% $312,600 $9,333,300 3.5% $221,300 $9,242,000 2.5% $129,900 $9,150,600 1.4%North Central $3,224,800 $120,300 $3,345,100 3.7% $157,800 $3,382,600 4.9% $111,800 $3,336,600 3.5% $65,600 $3,290,400 2.0%Northwestern $9,200,500 $209,500 $9,410,000 2.3% $282,800 $9,483,300 3.1% $200,300 $9,400,800 2.2% $117,500 $9,318,000 1.3%Oakland $21,429,400 $548,800 $21,978,200 2.6% $822,100 $22,251,500 3.8% $582,200 $22,011,600 2.7% $341,500 $21,770,900 1.6%Schoolcraft $12,706,400 $351,400 $13,057,800 2.8% $488,400 $13,194,800 3.8% $345,900 $13,052,300 2.7% $202,900 $12,909,300 1.6%Southwestern $6,657,600 $116,000 $6,773,600 1.7% $180,200 $6,837,800 2.7% $127,600 $6,785,200 1.9% $74,900 $6,732,500 1.1%St. Clair $7,158,000 $179,100 $7,337,100 2.5% $243,800 $7,401,800 3.4% $172,600 $7,330,600 2.4% $101,300 $7,259,300 1.4%Washtenaw $13,301,100 $423,600 $13,724,700 3.2% $560,600 $13,861,700 4.2% $397,000 $13,698,100 3.0% $232,900 $13,534,000 1.8%Wayne County $16,989,800 $463,000 $17,452,800 2.7% $588,300 $17,578,100 3.5% $416,600 $17,406,400 2.5% $244,400 $17,234,200 1.4%West Shore $2,446,200 $81,300 $2,527,500 3.3% $76,600 $2,522,800 3.1% $54,300 $2,500,500 2.2% $31,800 $2,478,000 1.3%Total $311,492,000 $7,500,000 $318,992,000 2.4% $10,590,700 $322,082,700 3.4% $7,500,000 $318,992,000 2.4% $4,400,000 $315,892,000 1.4%

Executive House Senate Conference


FY 2016-17 Community Colleges Budget: Appropriations

Appropriation Appropriation Appropriation AppropriationDollars % Dollars % Dollars % Dollars % Dollars % Dollars % Dollars %

Operations GrantsGross 311,492,000 318,992,000 7,500,000 2.4% 322,082,700 3,090,700 1.0% 10,590,700 3.4% 318,992,000 0 0.0% 7,500,000 2.4% 315,892,000 (3,100,000) -1.0% 4,400,000 1.4%Restricted 236,181,200 185,481,200 (50,700,000) 185,481,200 0 (50,700,000) 185,481,200 0 (50,700,000) 185,481,200 0 (50,700,000)GF/GP 75,310,800 133,510,800 58,200,000 136,601,500 3,090,700 61,290,700 133,510,800 0 58,200,000 130,410,800 (3,100,000) 55,100,000

MPSERS State ShareGross 69,500,000 73,200,000 3,700,000 5.3% 73,200,000 0 0.0% 3,700,000 5.3% 73,200,000 0 0.0% 3,700,000 5.3% 73,200,000 0 0.0% 3,700,000 5.3%Restricted 17,200,000 73,200,000 56,000,000 73,200,000 0 56,000,000 73,200,000 0 56,000,000 73,200,000 0 56,000,000GF/GP 52,300,000 0 (52,300,000) 0 0 (52,300,000) 0 0 (52,300,000) 0 0 (52,300,000)

MPSERS OffsetGross 1,733,600 1,733,600 0 0.0% 1,733,600 0 0.0% 0 0.0% 1,733,600 0 0.0% 0 0.0% 1,733,600 0 0.0% 0 0.0%Restricted 1,733,600 1,733,600 0 1,733,600 0 0 1,733,600 0 0 1,733,600 0 0GF/GP 0 0 0 0 0 0 0 0 0 0 0 0

Renaissance Zone ReimbursementsGross 5,100,000 5,100,000 0 0.0% 5,100,000 0 0.0% 0 0.0% 5,100,000 0 0.0% 0 0.0% 5,100,000 0 0.0% 0 0.0%Restricted 1,600,000 0 (1,600,000) 0 0 (1,600,000) 0 0 (1,600,000) 0 0 (1,600,000)GF/GP 3,500,000 5,100,000 1,600,000 5,100,000 0 1,600,000 5,100,000 0 1,600,000 5,100,000 0 1,600,000

TOTAL BUDGETGross 387,825,600 399,025,600 11,200,000 2.9% 402,116,300 3,090,700 0.8% 14,290,700 3.7% 399,025,600 0 0.0% 11,200,000 2.9% 395,925,600 (3,100,000) -0.8% 8,100,000 2.1%Federal 0 0 0 -- 0 0 -- 0 -- 0 0 -- 0 -- 0 0 -- 0 --Restricted 256,714,800 260,414,800 3,700,000 1.4% 260,414,800 0 0.0% 3,700,000 1.4% 260,414,800 0 0.0% 3,700,000 1.4% 260,414,800 0 0.0% 3,700,000 1.4%GF/GP 131,110,800 138,610,800 7,500,000 5.7% 141,701,500 3,090,700 2.2% 10,590,700 8.1% 138,610,800 0 0.0% 7,500,000 5.7% 135,510,800 (3,100,000) -2.4% 4,400,000 3.4%

Change from Current Year

FY 2016 YTD as of 2/10/16

EXECUTIVE HOUSE SENATE CONFERENCE


Change from Executive






FY 2016-17: HIGHER EDUCATION Summary: Conference Report Article III, Senate Bill 801 (S-1) CR-1

Analyst: Marilyn Peterson


as of 2/10/16 Executive House (HB 5291) Senate (SB 801) Conference Amount %IDG/IDT $0 $0 $0 $0 $0 $0 --Federal 97,026,400 99,026,400 99,026,400 100,179,200 101,526,400 4,500,000 4.6Local 0 0 0 0 0 0 --Private 0 0 0 0 0 0 --Restricted 205,279,500 237,209,500 237,209,600 237,209,500 237,209,500 31,930,000 15.6GF/GP 1,232,418,500 1,262,418,500 1,250,047,300 1,262,418,500 1,243,904,500 11,486,000 0.9

Gross $1,534,724,400 $1,598,654,400 $1,586,283,300 $1,599,807,200 $1,582,640,400 $47,916,000 3.1 Notes: (1) FY 2015-16 year-to-date figures include mid-year budget adjustments through February 10, 2016. (2) Appropriation figures for all years include all proposed appropriation amounts, including amounts designated as "one-time." (3) "House" refers to budget as passed by the House in HB 5291; "Senate" refers to budget as passed by the Senate in SB 801. Overview The Higher Education budget, contained in Article III of the compiled School Aid Act, provides funding for operational support of the state's 15 public universities, the AgBioResearch and Extension programs operated by Michigan State University, various financial aid programs for students attending public and independent colleges and universities in the state, and several other smaller higher education-related programs.



(as of 2/10/16)


Change

1. University Operations Conference increases university operations funding by 2.9% ($39.8 million), a reduction of $20.0 million GF/GP from the Executive, and concurs with Executive, House, and Senate in reinstating the formula component that distributes 50% of the performance funding based on each university's share of operational funding appropriated in the baseline year of FY 2010-11. Percentages applying to other formula components are thus halved; those other components are weighted completions, research and development expenditures, and comparisons to Carnegie peers, the latter of which includes four metrics. Performance funding that would otherwise be allocated to Eastern and Oakland is reduced by $400,000 for each school and divided equally among the four other institutions that would still be below FY 2010-11 funding levels: Michigan State, UM-Ann Arbor, Wayne State, and Western. Receipt of performance funding conditioned on restraining tuition/fee increases to 4.2% (set at 3.2% in current year). Projected funding increases for individual universities range from 2.4% to 4.5%.

GrossRestricted

GF/GP

$1,360,557,600 200,019,500

$1,160,538,100

$39,787,40031,200,000$8,587,400

Executive increases university operations funding by $59.8 million ($31.2 million School Aid Fund, $28.6 million GF/GP), a 4.4% increase that brings total support to FY 2010-11's level of $1.4 billion. Increase distributed under a revised performance funding formula that reinstates a component that distributes 50% of the increase based on each university's share of operational funding appropriated in the baseline year of FY 2010-11. Percentages applying to other formula components thus halved. Receipt of performance funding conditioned on restraining resident undergraduate tuition/fee increases to 4.8%. Projected funding increases for individual universities ranging from 3.5% to 6.8%.




(as of 2/10/16)


Change

1. University Operations, continued House increases university operations funding by 3.4% ($46.3 million), a reduction of $13.5 million GF/GP from the Executive. House concurs with Executive's reinstatement of a performance funding formula component that distributes 50% of the increase based on each university's share of operational funding appropriated in the baseline year of FY 2010-11. House further revises formula to incorporate a fifth Carnegie metric: whether the university received a 2010 or 2015 Community Engagement classification. House conditions performance funding on restraining resident undergraduate tuition/fee increases to 4.8% or $500, whichever was more. Projected funding increases for universities ranging from 2.8% to 4.7%.

See previous

page for Conference

change

Senate concurs with Executive in total amount of university performance funding and formula changes, but reduces funding for Eastern and Oakland by the amounts that they otherwise would have received under the formula component distributing 50% of the performance funding based on FY 2010-11 appropriations. The resulting $2.7 million (about $1.6 million from Eastern and about $1.7 million from Oakland) divided equally between the remaining four universities that would still be below FY 2010-11 funding levels, thereby providing $667,100 each for Michigan State, University of Michigan – Ann Arbor, Wayne State, and Western. Senate concurs with Executive in 4.8% tuition restraint cap. Projected funding increases for individual universities ranging from 2.4% to 5.2%.

2. MSU AgBioResearch and MSU Extension Executive provides increases for Michigan State's AgBioResearch and Extension programs, bringing funding for each to FY 2010-11 levels. AgBioResearch with 2.3% ($734,800 GF/GP) increase, bringing funding to $33.2 million; Extension with 2.4% ($677,800 GF/GP) increase, bringing funding to $28.7 million. House, Senate, and Conference concur.

GrossGF/GP

$60,503,100 $60,503,100

$1,412,600$1,412,600

3. MSU Veterinary Diagnostic Laboratory Conference provides one-time appropriation of $500,000 GF/GP for MSU's Diagnostic Center for Population and Animal Health, which assists in identifying emerging animal and public health issues and works with national, state, and local officials on research and responses to threats such as avian influenza, bovine tuberculosis, West Nile virus, and chronic wasting disease.

GrossGF/GP

NA NA

$500,000$500,000

4. Michigan Public School Employees' Retirement System (MPSERS) Executive assumes enactment of a cap of 25.73% of payroll on university payments for unfunded accrued liability under MPSERS. Executive provides $5.9 million in School Aid Fund (SAF) revenues to pay the difference between the 25.73% cap and universities' unfunded accrued liability. This would affect the seven universities with MPSERS employees: Central, Eastern, Ferris, Lake Superior State, Michigan Tech, Northern, and Western. Current-year funding is $5.2 million, which also assumes enactment of 25.73% cap. House, Senate, and Conference concur.

GrossRestricted

$5,160,000 5,160,000

$730,000730,000

5. State Competitive Scholarships Senate provides a 2.2% increase, adding $404,000 in federal TANF funding to this program, which assists with tuition and mandatory fees for undergraduate students pursuing their first degrees who have demonstrated both financial need and academic merit. Executive, House, and Conference make no changes.

GrossFederalGF/GP

$18,361,700 18,361,700

$0

$00

$0




(as of 2/10/16)


Change

6. Tuition Incentive Program Executive adds $2.0 million federal TANF funds for Tuition Incentive Program, which pays associate's degree tuition for Medicaid-eligible students completing high school, and provides tuition assistance of up to $2,000 for participants continuing on with a baccalaureate. Total funding would be $50.5 million ($45.8 million TANF, $4.7 million GF/GP). FY 2014-15 expenditures were $49.4 million, and the Executive also seeks a $2.0 million FY 2015-16 supplemental appropriation for the program, which would bring current-year funding to $50.5 million. Executive also proposes annual cap of $8.5 million on total awards at any one college or university (affects Ferris State University). House and Senate concur in funding increase, but do not include cap on total awards at any one institution. Senate further requires Phase I payments to be prorated as necessary to reflect available resources and the amount appropriated. Conference concurs with Executive on per-institution cap on total awards, and increases funding by $4.5 million TANF, for total appropriations of $53.0 million. The conference report also increases current-year funding by $4.5 million TANF (see below).

GrossFederalGF/GP

$48,500,000 43,800,000 $4,700,000

$4,500,0004,500,000

$0

7. Tuition Grant Program Executive proposes no funding change for this financial aid program for students at independent colleges and universities. House increases funding by $1.2 million GF/GP, a 3.4% increase. Senate increases by $748,800 using federal TANF revenues, providing a 2.2% increase for the program. Conference increases by $986,000 GF/GP, a 2.9% increase in total funding.

GrossFederalGF/GP

$34,035,500 31,664,700 $2,370,800

$986,0000

$986,000

8. Indian Tuition Waiver Program House provides a $100 placeholder, funded with School Aid Fund revenues, for potential funding to offset some portion of the gap between Indian Tuition Waiver funding previously rolled into university appropriations and actual costs. Executive, Senate, and Conference do not include.

GrossRestricted

NA NA

$00

FY 2015-16 SUPPLEMENTAL APPROPRIATIONS


(as of 2/10/16)

FY 2015-16 Supplemental

Appropriations

1. Tuition Incentive Program In a revised supplemental request made May 6, 2016, the Executive seeks an additional $4.5 million in federal TANF authorization to meet anticipated current-year costs of the Tuition Incentive Program. Conference includes language to provide this supplemental appropriation.

GrossFederalGF/GP

$48,500,000 43,800,000 $4,700,000

$4,500,0004,500,000

$0


GENERAL SECTIONS Sec. 236a. Intent Regarding Succeeding Fiscal Year – RETAINED Executive replaces Sec. 236a, which expresses legislative intent to maintain appropriations, with a new Article IV containing anitemized summary of appropriations for FY 2016-17 and anticipated for FY 2017-18, with the only FY 2017-18 change being an additional $200,000 in funding for MPSERS unfunded accrued liabilities in excess of the proposed 25.73% employer cap.Conference, House, and Senate retain current-year language.

Sec. 236c. State Building Authority Rent Payments – REVISEDExecutive itemizes estimated SBA rent payments to be made under the DTMB budget for university capital outlay projects.Current-year payments total an estimated $136.0 million, updated to $145.0 million for FY 2016-17. Conference, House, and Senate concur.



Sec. 239a. Foreign Vehicles – DELETED States intent that funds appropriated to universities not be used to purchase vehicles assembled outside the United States.Executive and Conference delete, House and Senate retain.

Sec. 242. Federal or Private Funds – RETAINEDAppropriates federal or private funds received by the state for use by a college or university. Executive deletes language specifying that acceptance of funds does not place an ongoing obligation on the legislature; Conference, House, and Senateretain this language.

Sec. 245. University Transparency – RETAINEDRequires universities to post various budget, compensation, financial, and performance data, as well as transfer policies, on its website, using a standard format. Executive deletes requirement that state budget director determine compliance and languagegranting authority to withhold payments for a university not in compliance; Conference, House, and Senate retain this language.

GRANTS AND FINANCIAL AID Sec. 252. Tuition Grant Program – REVISED Establishes conditions for the Tuition Grant Program, which provides need-based tuition assistance at Michigan independent (i.e., private and nonprofit) colleges and universities. Executive deletes requirement for unexpended funds to continue to be available in the next fiscal year; unexpended funds

thus would lapse to the General Fund. Conference, House, and Senate retain the rollover provision. Executive reduces annual cap on awards at any one institution (which affects awards at Baker College and Davenport

University) from the current $3.2 million to $3.0 million. House raises cap to $3.5 million, Senate raises cap to $3.3 million, Conference retains current cap of $3.2 million.

Executive moves application deadline from July 1 to March 1. Conference, House, and Senate retain current deadline.

Sec. 254. Financial Aid Payment Schedule – REVISEDSpecifies quarterly payment schedule for financial aid programs: 50%, 30%, 10%, 10%. Executive recommends a revised quarterly payment schedule for the Tuition Incentive Program in which payments are completed in the first three quarters: 55%, 40%, 5%. Conference, House, and Senate concur.

Sec. 256. Tuition Incentive Program – REVISEDProvides for the tuition incentive program, which pays associate's degree ("Phase I") tuition for Medicaid-eligible students completing high school, and provides tuition assistance of up to $2,000 for participants continuing on with a baccalaureate ("Phase II"). Executive proposes annual limit of $8.5 million in awards at any one college or university, beginning in FY 2017-18, a change that currently would affect only Ferris State University. House does not include this cap. Senate does not include cap, and instead requires proration of Phase I awards if appropriation insufficient. Conference concurs with Executive.

UNIVERSITY OPERATIONS Sec. 261. Douglas Lake Biological Station – RETAINED Designates University of Michigan Douglas lake Biological Station as a unique resource. Executive deletes; Conference, House, and Senate retain.

Sec. 265. Performance Funding Criteria: Tuition Restraint – REVISEDConditions receipt of performance funding in part on compliance with tuition restraint requirements that limit allowable resident undergraduate tuition/fee increases to 3.2% over the prior year. Executive increases the limit to 4.8%. House sets limit at 4.8% or $500, whichever is more. Senate concurs with Executive.

Conference sets at 4.2%. Executive deletes language that in part defines "fee" to include the cost of a university-affiliated health insurance policy for a

university that compels resident undergraduate students to have health insurance coverage as a condition of enrollment.Conference, House, and Senate retain this language.

Executive clarifies various terms consistent with usage. Conference, House, and Senate concur. Conference includes Senate language that says that universities that exceed the tuition restraint cap shall not receive a planning or construction authorization for a state-funded capital outlay project in FY 2017-18 or FY 2018-19. Conference also adds a provision explicitly stating that the legislature may at any time adjust appropriations for a university thatadopts a tuition and fee increase that exceeds the tuition restraint cap.



Sec. 265a. Performance Funding Criteria and Formula – REVISEDConditions receipt of performance funding on:

Compliance with tuition restraint provisions. Certification that university participates in reverse transfer agreements with at least three Michigan community colleges,

or has made a good faith effort to do so. Executive deletes language regarding good faith effort. Conference, House, and Senate concur.

Certification that dual enrollment policy does not consider use of credits toward high school graduation requirements. Participation in Michigan Transfer Network; Executive revises to specify active participation, including submission of

timely updates. Conference, House, and Senate concur.

Establishes process for universities to certify compliance with all requirements. Provides for performance funding forfeited due to noncompliance to be redistributed to other universities based on their performance funding appropriations. Sets the formula used to distribute performance funding, currently distributed as follows:

22.2% based on weighted undergraduate completions in critical skills areas. 11.1% based on research and development expenditures (for high-research universities) 66.7% based on comparisons with Carnegie classification peers (or improvement) on four metrics: six-year graduation

rate, total degree completions, institutional support as a percentage of core expenditures, and percentage of studentsreceiving Pell grants.

Executive reinstates a component that distributes 50% of performance funding proportional to each university's share of total operations funding in the baseline year of FY 2010-11, thereby halving the percentages applying to the remaining three components. Conference, House, and Senate concur. Executive also deletes statement of intent to lower score for three-year improvement from 2 points to 1 point. House concurs. Senate and Conference retain the statement. Conference does not include House's formula revision to add a fifth Carnegie metric (scored at 3 points) of whether a university received a Carnegie Community Engagement classification in 2010 or 2015.

Sec. 268. Indian Tuition Waivers – REVISED Executive deletes language expressing legislative intent for universities to allocate Indian Tuition Waiver costs from the generalfund, and states that a report required from the Department of Civil Rights is to include specified information from each "public university," rather than "postsecondary institution." Conference, House, and Senate retain statement of legislative intent regarding allocation of Indian Tuition Waiver costs, andrevise and clarify reporting requirements to include university data on number of undergraduate and graduate waiver students, costs of waivers, and degree and certification completion, by degree or certificate level. In conjunction with providing a $100 placeholder for potential funding, House also includes language providing for distribution of Indian Tuition Waiver appropriations.

Sec. 271a. Instructional Activity Pertaining to Unionization – RETAINEDStates intent that public universities not use appropriations to offer instructional activity that targets companies or groups of companies for unionization or decertification of a union. Executive deletes; Conference, House, and Senate retain.

Sec. 274. Embryonic Stem Cell Research – RETAINEDStates intent that organizations conducting research using human embryonic stem cells report to the Department of Health and Human Services regarding compliance with federal guidelines and stem cell lines derived by university. Executive deletes; Conference, House, and Senate retain.

Sec. 275. Veterans' Policies and Reports – RETAINEDStates legislative intent for universities to provide various veterans-related services and requires certain reports. Executivedeletes report requirement pertaining to participation in yellow ribbon GI education program. Conference, House, and Senateretain.

Sec. 275a. Capital Outlay Requirements – RETAINEDProhibits use of state funds for self-liquidating projects; requires compliance with Joint Capital Outlay Subcommittee reportingrequirements, with specified penalty of 1.0% of appropriation for failure to comply. Executive deletes; Conference, House, andSenate retain.

Sec. 286a. Academic Program Partnerships – NEW Conference includes Senate language requiring Michigan Community College Association, Michigan Association of StateUniversities, and Michigan Independent Colleges and Universities to report on academic partnerships between public communitycolleges, public universities, and private colleges and universities.

Sec. 293. Student Records – DELETED Requires universities to provide information from the records of a student to persons authorized by the student. Executive deletes; Conference, House, and Senate concur.


Summary: FY 2016-17 University Performance Funding Increases

% of formula:

Funding per unit:

UniversityFY 2010-11

Appropriation

Michigan State $268,770,700 $283,685,200 $3,973,365 2,767 $755,414 $311,961,002 $547,140 2 3 0 0 5 36,653 183,265 $1,615,449 200,000 $7,091,400 $275,862,100 2.6%UM-Ann Arbor 299,975,000 $316,254,500 4,429,538 2,971 811,107 $704,342,000 1,235,327 3 3 2 0 8 28,192 225,533 1,988,031 200,000 $8,664,000 308,639,000 2.9%Wayne State 191,451,300 $214,171,400 2,999,737 885 241,612 $150,737,120 264,374 2 2 0 3 7 14,706 102,943 907,428 200,000 $4,613,200 196,064,500 2.4%

Michigan Tech 46,754,700 $47,924,200 671,238 902 246,253 $51,389,065 90,130 3 2 2 0 7 5,432 38,023 335,168 $1,342,800 48,097,500 2.9%Western 104,334,100 $109,615,100 1,535,296 1,089 297,306 $18,997,041 33,318 2 2 0 3 7 16,870 118,087 1,040,912 200,000 $3,106,800 107,440,900 3.0%

Central 81,127,100 $80,132,000 1,122,349 861 235,060 $13,794,808 24,194 3 3 3 0 9 17,859 160,731 1,416,816 $2,798,400 83,925,500 3.4%Oakland 48,371,900 $50,761,300 710,975 1,119 305,496 $9,080,916 15,927 2 3 2 0 7 14,851 103,957 916,363 (400,000) $1,548,800 49,920,700 3.2%

Eastern 71,782,500 $76,026,200 1,064,842 817 223,048 0 3 2 2 7 14,966 104,759 923,431 (400,000) $1,811,300 73,593,800 2.5%Ferris 50,369,800 $48,619,200 680,972 1,305 356,276 2 3 2 2 9 10,750 96,750 852,835 $1,890,100 52,259,900 3.8%Grand Valley 65,275,700 $61,976,400 868,057 1,281 349,724 3 3 2 2 10 19,677 196,767 1,734,467 $2,952,200 68,227,900 4.5%Saginaw Valley 28,181,200 $27,720,700 388,263 463 126,403 0 2 2 2 6 7,906 47,434 418,124 $932,800 29,114,000 3.3%UM-Dearborn 24,033,100 $24,726,200 346,321 435 118,759 2 2 0 2 6 5,770 34,620 305,169 $770,200 24,803,300 3.2%UM-Flint 21,815,400 $20,898,000 292,703 558 152,339 0 2 2 2 6 5,462 32,775 288,903 $733,900 22,549,300 3.4%

Northern 45,107,700 $45,140,300 632,246 550 150,155 2 2 2 0 6 7,356 44,136 389,051 $1,171,500 46,279,200 2.6%

Lake Superior 13,207,400 $12,694,200 177,798 190 51,872 2 3 0 2 7 2,112 14,784 130,318 $360,000 13,567,400 2.7%

TOTAL: $1,360,557,600 $1,420,344,900 $19,893,700 16,193 $4,420,822 $1,260,301,952 $2,210,411 28 38 21 20 107 208,561 1,504,563 $13,262,467 $0 $39,787,400 $1,400,345,000 2.9%

Funding Increase: $39,787,400Percent Increase: 2.9%

Data Notes Scoring Based on Carnegie PeersComponent Source Years Notes Top 20% nationally 3Critical skills undergrad completions State HEIDI FYs 2014-2015 STEM/health/etc. Above national median 2Research & develop expends Federal IPEDS FY 2014 Carnegie research universities only Improving over 3 years 2Six-year graduation rate Federal IPEDS^ FYs 2010-2013 First-time, full-time degree seeking studentsTotal degree completions Federal IPEDS^ FYs 2010-2013 Includes graduate degreesInst support as % of core expends Federal IPEDS^ FYs 2010-2013 Measure of administrative costs *Requirements to receive funding increase:Pell grant students Federal IPEDS^ FYs 2011-2013 Federal need-based aid for undergrads 1. Restrain FY 2016-17 resident undergraduate tuition/fee rate increase to 4.2% or belowUndergrad FYES State HEIDI FY 2015 Includes nonresident students 2. Participate in at least three reverse transfer agreements with community colleges

3. Maintain a dual enrollment credit policy that does not consider whether credits were used toward high school graduation ̂via Business Leaders for Michigan and Anderson Economic Group 4. Actively participate in and submit timely updates to the Michigan Transfer Network

Proportional to FY 2010-11 Performance Funding Proportional to Share of Total Performance Funding Scored vs. National Carnegie Peers

50.0% 11.1% 5.6% 33.3%

$0.0140 per dollar $273.01 per completion $0.0018 per dollar $8.81 per weighted point

Funding

Critical Skills

Undergrad Completions Funding

Research & Development Expenditures Funding

6-year Grad Rate Funding

Redistribute Across-the-

Board Funding

*Total Performance

FundingIncrease

ProposedFY 2016-17

AppropriationPercent Change

FY 2015-16Year-to-Date

AppropriationTotal

Degrees

Instl. Support as % of

Expends.

% Students Receiving

Pell Grants

Total Points

Total FY 2015

Undergrad FYES

FYES-Weighted

Points


FY 2016-17 Higher Education Budget: Appropriations (Sec. 236)

Appropriation Appropriation Appropriation AppropriationDollars % Dollars % Dollars % Dollars % Dollars % Dollars % Dollars %

University OperationsGross $1,360,557,600 $1,420,345,000 $59,787,400 4.4% $1,406,816,600 ($13,528,400) $46,259,000 3.4% $1,420,345,000 $0 $59,787,400 4.4% $1,400,345,000 ($20,000,000) $39,787,400 2.9%Restricted 200,019,500 231,219,500 31,200,000 231,219,500 0 31,200,000 231,219,500 0 31,200,000 231,219,500 0 31,200,000GF/GP 1,160,538,100 1,189,125,500 28,587,400 1,175,597,100 (13,528,400) 15,059,000 1,189,125,500 0 28,587,400 1,169,125,500 (20,000,000) 8,587,400

MSU AgBioResearchGross 32,508,300 33,243,100 734,800 2.3% 33,243,100 0 734,800 2.3% 33,243,100 0 734,800 2.3% 33,243,100 0 734,800 2.3%GF/GP 32,508,300 33,243,100 734,800 33,243,100 0 734,800 33,243,100 0 734,800 33,243,100 0 734,800

MSU ExtensionGross 27,994,800 28,672,600 677,800 2.4% 28,672,600 0 677,800 2.4% 28,672,600 0 677,800 2.4% 28,672,600 0 677,800 2.4%GF/GP 27,994,800 28,672,600 677,800 28,672,600 0 677,800 28,672,600 0 677,800 28,672,600 0 677,800

MPSERSGross 5,160,000 5,890,000 730,000 14.1% 5,890,000 0 730,000 14.1% 5,890,000 0 730,000 14.1% 5,890,000 0 730,000 14.1%Restricted 5,160,000 5,890,000 730,000 5,890,000 0 730,000 5,890,000 0 730,000 5,890,000 0 730,000

HEIDIGross 200,000 200,000 0 200,000 0 0 200,000 0 0 200,000 0 0GF/GP 200,000 200,000 0 200,000 0 0 200,000 0 0 200,000 0 0

Midwest CompactGross 115,000 115,000 0 115,000 0 0 115,000 0 0 0.0% 115,000 0 0GF/GP 115,000 115,000 0 115,000 0 0 115,000 0 0 115,000 0 0

King-Chavez-ParksGross 2,691,500 2,691,500 0 2,691,500 0 0 2,691,500 0 0 2,691,500 0 0GF/GP 2,691,500 2,691,500 0 2,691,500 0 0 2,691,500 0 0 2,691,500 0 0

Competitive ScholarshpsGross 18,361,700 18,361,700 0 18,361,700 0 0 18,765,700 404,000 404,000 2.2% 18,361,700 0 0 0.0%Federal 18,361,700 18,361,700 0 18,361,700 0 0 18,765,700 404,000 404,000 18,361,700 0 0

Tuition Grant ProgramGross 34,035,500 34,035,500 0 35,192,700 1,157,200 1,157,200 3.4% 34,784,300 748,800 748,800 2.2% 35,021,500 986,000 986,000 2.9%Federal 31,664,700 31,664,700 0 31,664,700 0 0 32,413,500 748,800 748,800 31,664,700 0 0GF/GP 2,370,800 2,370,800 0 3,528,000 1,157,200 1,157,200 2,370,800 0 0 3,356,800 986,000 986,000

Tuition Incentive Program*Gross 48,500,000 50,500,000 2,000,000 4.1% 50,500,000 0 2,000,000 4.1% 50,500,000 0 2,000,000 4.1% 53,000,000 2,500,000 4,500,000 9.3%Federal 43,800,000 45,800,000 2,000,000 45,800,000 0 2,000,000 45,800,000 0 2,000,000 48,300,000 2,500,000 4,500,000GF/GP 4,700,000 4,700,000 0 4,700,000 0 0 4,700,000 0 0 4,700,000 0 0

Vets' Children/Ofcrs' SurvGross 1,400,000 1,400,000 0 1,400,000 0 0 1,400,000 0 0 1,400,000 0 0Restricted 100,000 100,000 0 100,000 0 0 100,000 0 0 100,000 0 0GF/GP 1,300,000 1,300,000 0 1,300,000 0 0 1,300,000 0 0 1,300,000 0 0

Project GEAR-UPGross 3,200,000 3,200,000 0 3,200,000 0 0 3,200,000 0 0 3,200,000 0 0Federal 3,200,000 3,200,000 0 3,200,000 0 0 3,200,000 0 0 3,200,000 0 0

MSU Veterinary LabGross 0 0 0 0 0 0 0 0 0 500,000 500,000 500,000GF/GP 0 0 0 0 0 0 0 0 0 500,000 500,000 500,000

Indian Tuition WaiversGross 0 0 0 100 100 100 0 0 0 0 0 0Restricted 0 0 0 100 100 100 0 0 0 0 0 0

TOTAL BUDGETGross $1,534,724,400 $1,598,654,400 $63,930,000 4.2% $1,586,283,300 ($12,371,100) -0.8% $51,558,900 3.4% $1,599,807,200 $1,152,800 0.1% $65,082,800 4.2% $1,582,640,400 ($16,014,000) -1.0% $47,916,000 3.1%Federal 97,026,400 99,026,400 2,000,000 2.1% 99,026,400 0 -- 2,000,000 2.1% 100,179,200 1,152,800 1.2% 3,152,800 3.2% 101,526,400 2,500,000 2.5% 4,500,000 4.6%Restricted 205,279,500 237,209,500 31,930,000 15.6% 237,209,600 100 -- 31,930,100 15.6% 237,209,500 0 -- 31,930,000 15.6% 237,209,500 0 -- 31,930,000 15.6%GF/GP $1,232,418,500 $1,262,418,500 $30,000,000 2.4% $1,250,047,300 ($12,371,200) -1.0% $17,628,800 1.4% $1,262,418,500 $0 -- $30,000,000 2.4% $1,243,904,500 ($18,514,000) -1.5% $11,486,000 0.9%

* Tuition Incentive Program year-to-date appropriation as of 5/31/16; does not reflect $4.5 million FY 2015-16 supplemental appropriation incorporated into FY 2016-17 conference report.




EXECUTIVE HOUSE (HB 5291) SENATE (SB 801) CONFERENCE (SB 801 (S-1) CR-1)

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